WAL-MART Acquired 5% Stake In Jingdong

Beijing time on June 29th noon, according to reports, according to people familiar with the matter,

The company recently signed an equity trading agreement to acquire the second largest electricity supplier in China.

5% stake.

The equity paction includes provisions allowing Wal-Mart Store Inc to further increase the proportion of equity investment.

According to the terms of the terms of the paction, according to the current number of tradable shares of Jingdong, according to the relevant people familiar with the matter, if Wal-Mart Store Inc raises the shareholding ratio of the Jingdong company to 10%, Wal-Mart Store Inc can get the observer seat of the board of directors of the company.

Wal-Mart Store Inc can increase its shareholding ratio through major shareholders or open markets of Jingdong.

The provision has not yet been publicly disclosed.

At the same time, although the terms of the equity investment did not require Wal-Mart Store Inc to increase the proportion of equity investment, Wal-Mart Store Inc and Jingdong have discussed the possibility of increasing the shareholding ratio to more than 5%.

In addition, the two companies introduced a non competitive clause in the equity investment agreement for up to eight years, according to people.

Under the terms, Wal-Mart Store Inc and Jingdong can not set up or invest in business that has competition relationship with the other company.

The above cooperation terms show that Wal-Mart Store Inc and Jingdong have attached great importance to the long-term significance of the equity investment, and also disclosed that Jingdong companies want to deepen cooperation with Wal-Mart Store Inc.

At present, the development of Wal-Mart Store Inc's retail business in China is blocked, and the market share growth is slow.

At present, only Jingdong, as a strategic partner, occupies a seat on the board of directors of the board of directors of the Jingdong.

In 2014, Tencent Inc acquired 15% stake in Jingdong.

Tencent Inc executive chairman Liu Chiping currently holds the post of director of Jingdong company.

Last week, Wal-Mart Store Inc announced the signing of an equity investment cooperation agreement with Jingdong.

According to the agreement, Jingdong will get the ownership of Wal-Mart Store Inc's first store e-commerce platform.

Meanwhile, Wal-Mart Store Inc will get a 5% stake in Jingdong.

At present, Wal-Mart Store Inc has about 430 stores in China, accounting for 1/10 of the total number of stores in the United States.

In 2012, Wal-Mart Store Inc invested for the first time.

To increase the market share of China's electricity suppliers.

Last year, Wal-Mart Store Inc bought all the shares of shop No. 1.

According to the data provided by IResearch research company, the number one store occupies only 1.5% of China's electricity retail market.

China has surpassed the United States to become the largest electricity supplier market in the world.

According to the research report released by the research company, last year, the retail consumption of China's electricity suppliers was 589 billion US dollars, which was higher than the electricity consumption volume of US $334 billion.

Before 2020, the total electricity market in China is expected to reach US $1 trillion and 100 billion.

At present, Alibaba group's Taobao and Tmall platforms are the largest e-commerce platform in China, and Jingdong is following.

However, Alibaba Group operates only an e-commerce platform without proprietary business, while Jingdong group sells goods directly to consumers through its own express delivery network.

As a result, Jingdong group and Wal-Mart Store Inc have closer business models.

In the past seven quarters, Jingdong's revenue growth has surpassed Alibaba group and its market share has also increased.