Alibaba, Haier form logistics JV

E-commerce giant Alibaba Group Holding Ltd signed a deal on Monday with home appliance maker Haier Group to form a joint venture, in a bid to build a logistics and service network to deliver household appliances and other large items across China.

Alibaba will invest HK$2.82 billion ($363.8 million) in Haier Electronics Group Co, the Hong Kong-listed subsidiary of Haier Group. About HK$1.86 billion of the total amount will be invested in Goodaymart, a Haier Electronics unit that has warehouses and distribution networks across the country and provides after-sales services to Haier retail franchisees.

Alibaba will also acquire a 2 percent stake in Haier Electronics by subscribing to HK$965 million in newly issued shares of the company.