Chinese internet giant Alibaba Group Holding Ltd (BABA) on Wednesday said it has signed a deal with U.S. e-commerce platform Shopify Inc to acquire a majority stake in the company.
The deal will be announced in coming days, according to a statement posted on Alibaba Group’s website.
Alibaba Group is a leading online shopping platform in China, with over 100 million users.
Alibaba shares fell by 1.3% to 6,087 yuan (US$4.5 million) on the Shanghai Stock Exchange.
The purchase is worth US$16 billion, or about 2% of Alibaba Group.
Shopify said it had agreed to buy a 51% stake in Alibaba Group, which will form the new Alibaba group’s second-largest holding, according in a statement.
Alibaba Group, the world’s largest online shopping company, said in March that it would buy a minority stake in Shopify.
In March, Alibaba Group said it planned to buy more than 1,400 merchants in the U.K., China and South Africa.
The deal will see Alibaba Group take control of Shopify, which has more than 30 million merchants globally.