Internet giant Google plans to invest $550 million in Chinese e-commerce powerhouse JD.com, part of the U.S. company's efforts to expand its presence in fast-growing Asian markets and battle rivals including Amazon.com.
The two companies described the investment as one piece of a broader partnership that will include the promotion of JD.com products on Google’s shopping service. This could help JD.com expand beyond its base in China and Southeast Asia and establish a meaningful presence in U.S. and European markets.
JD said Google will get 27.1 million newly issued JD.com Class A ordinary shares as part of the deal. This will give them less than a 1 percent stake in JD.
Recently, Google took a stake in Indonesian ride-hailing firm Go-Jek.