Supply chain-based technology and service provider JD.com and Dada Nexus Limited (“Dada”), China’s local on-demand delivery and retail platform, jointly announced on 25th February that JD.com’s investment in Dada has obtained all the requisite regulatory approvals. The transaction is expected to close by the end of February 2022.
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Upon the closing of this transaction, Dada will issue to JD.com a certain number of ordinary shares of Dada in consideration for US$546 million in cash and certain strategic resources from JD.com.
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JD.com will hold, taking into account its existing shareholding, approximately 52 percent of Dada’s issued and outstanding shares and expects to consolidate the financial results of Dada into its consolidated financial statements.