Alibaba (BABA) to buy e-commerce unit Kaola from NetEase for NOK 2 billion

Attendees pass an show at CES 2019 in Las Vegas.

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Alibaba said on Friday that it will acquire a cross-border e-commerce device, Kaola, from the Nasdaq-listed Chinese internet company NetEase for about $ 2 billion.

Kaola sells imported products in China that include clothing, consumer electronics and sports equipment. It is one of the largest Chinese e-commerce sites focusing on selling imported goods in the country, along with Alibaba's Tmall Global and's JD Worldwide.

Alibaba said that it plans to keep Kaola operating independently under its current brand, but it will have a new leader at the helm. Tmall Import and Export General Manager, Alvin Liu, will take over as CEO.

With Tmall Global and Kaola, Alibaba will have a massive market presence in the cross-border e-commerce sector.

China is one of the world's largest e-commerce markets, with research firm eMarketer predicting in a June report that by 201[ads1]9, the country will have $ 1.935 trillion in e-commerce, about three times more than the United States.

Daniel Zhang, chief executive officer of Alibaba Group, said in a statement that the company is confident of the future of China's import e-commerce market, which he said "remains at its earliest beginnings with huge growth potential."

"With Kaola, we will further enhance import service and experience for Chinese consumers," he added in a statement.

Earlier this year, Amazon's Chinese joint venture reported talks of merging with Kaola.

Last month, Alibaba reported better-than-expected revenue and earnings for the June quarter, but sales growth had slowed.

The company's core business, which includes Tmall and Taobao shopping platforms, and the booming cloud division contributed to growth. Annual active consumers at Alibaba's China retail outlets reached 674 million, a jump of 20 million, and most of these new consumers were said to be from less developed cities.

Alibaba, along with Yunfeng, will also invest around $ 700 million in NetEase & # 39; s music streaming service, NetEase Cloud Music, the companies said.

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