Kuaidi Dache and Didi Dache, China’s largest taxi-hailing app operators, are in advanced talks over a potential US$6 billion merger, the Wall Street Journal reported, citing people familiar with the matter.
The deal could see internet giants Alibaba Group and Tencent Holdings holding equal stakes in the new merged entity, the report said.
Alibaba has invested in Kuaidi Dache, while Didi Dache has been backed by Tencent.
A deal could be announced in the coming days unless the talks fall apart, the Journal cited a source as saying.
A merger will bring cost-saving benefits and other advantages for both Kuaidi Dache and Didi Dache, which have been locked in an exhausting battle and spending huge amounts to attract drivers and passengers, the report noted.
The talks between Kuaidi and Didi come as US car-hailing service Uber Technologies is seeking opportunities to expand in China.
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