Mogujie.com, a fashion-focused Chinese e-commerce services firm, is taking over Beijing-based rival Meilishuo via a stock-swap deal, according to the Wall Street Journal.
Mogujie will take control of the combined business, which will be headed by its chief executive, Chen Qi, the report said, citing people familiar with the matter.
The report did not provide financial terms of the deal, but said that Tencent will continue to be a strategic investor in the combined company.
The deal comes as Meilishuo, a social shopping site for women, had been trying to raise fresh capital for months without success.
Mogujie, meanwhile, completed its latest funding round in November, raising US$200 million, in a deal that valued the firm at about US$1.7 billion, sources were quoted as saying.
The takeover of Meilishuo will create a dominant player among services that specialize in women’s fashion and combine online shopping with social networking, the Journal noted.
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