Alibaba Group Holding Ltd. agreed to buy control of Indonesian e-commerce operator Lazada Group SA for about $1 billion to tap growth in Southeast Asia
China’s largest e-commerce operator will pay $500 million for new shares in Lazada and also purchase stock from existing investors, Alibaba said in a statement Tuesday. Lazada is currently controlled by Germany’s Rocket Internet SE.
Lazada sells goods such as clothing in six Southeast Asian markets, including Malaysia and Singapore. It competes with MatahariMall, backed by Lippo Group, and Tokopedia in the Indonesian market.
“With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China, a proven management team and a solid foundation,” Alibaba President Michael Evans said in the statement.