New York-listed 58.com and a second Chinese online marketplace have agreed to merge, as consolidation acc-elerates in the local technology sector.
A memorandum of understanding between 58.com and Ganji.com, which both function much like US site Craigslist, was signed in Beijing on March 14, people familiar with the matter said. The two groups are expected to announce as soon as today that they are planning to combine to create what will become one of the largest specialised online classified companies in China’s booming mobile internet space. The combined group could be valued at as much as $10bn, one person involved in the transaction said.
Because of antitrust concerns the transaction will probably involve two stages. Currently 58.com, which declined to comment, is about twice as big as Ganji.com, but both companies provide a range of online advertising listings including job adverts, housing and second-hand goods. Last year, internet group Tencent bought a 20 per cent stake in 58.com, and the online marketplace announced last month it had acquired Shanghai-based property-listing platform Anjuke Inc for about $267m in cash and shares.