Alibaba form joint venture to expand operations in Russia

VLADIVOSTOK, Russia (Reuters)-Greater China's e-commerce group, Alibaba has joined forces with a State Fund and two technology companies in Russia, in the hope that access to a customer base of more than 100 million people will boost your development. Stop 48% of Alibaba AliExpress Russia as a result of an agreement signed with the Russian Direct Investment Fund, the mobile phone operator Megafon and Mail.ru Internet Group during the Economic Forum of the East, in Russia, on Tuesday. The three Russian agents have a combined share of 52% in ecommerce platform, after contributing with money, stocks and other assets. " When you combine the leading platform of Internet consumption in Russia, the Russian alavancará the 100 million from AliExpress users of Mail.ru Group in their social media, messaging, email and online gaming properties ", informed the companies. E-commerce has grown rapidly in Russia in recent years, driven by better access to the Internet, with turnover of more than 14 billion dollars last year, a third of which came from international business, according to the Association of Internet trading companies of Russia, the Alibaba AliExpress business Russia will deliver to the new joint venture, while Megafon replace your slice of 10% at Mail.ru for a participation of 24% on AliExpress Russia. The Mail.ru will help with your e-commerce business Pandao and money in Exchange for a slice of 15% on AliExpress Russia. RDIF already buy a participation of 13% in the Russia.As shares of Mail.ru jumped AliExpress with news of the transaction, which must be completed in the first quarter of 2019. " Today's agreement gives the Mail a slice of what we believe to be the most well positioned platform to capitalize with Commerce in Russia ", said Renaissance Capital analysts in a note. The parties will invest hundreds of millions of dollars in the joint venture, according to the Chief Executive of Mail.ru, Boris Dobrodeev. The joint venture still plans to invest in other business along with the Mail.ru Group, including food technology, according to the companies.