The biggest online classifieds marketplace in China, 58.com, recently announced that it has entered into an agreement with Uxin, a top online retail platform for used vehicles in China, to buy parts of the company.
The purchase will include Uxin's B2B digital used vehicle auction business for $105 million.
The transaction still needs to meet approval and is expected to be finished during the beginning half of 2020.
CEO and Chairman of 58.com, Michael Jinbo Yao, believes the purchase will help the company venture further into more services. Uxin's auction business was seen as a direct competitor to 58.com. Yao believes the new addition will allow the company to provide additional services to dealers.
Yao also expects the deal to be closed quickly and aims to bring the expanded services to the market as soon as possible.
58.com and Uxin already have an established relationship after 58.com invested in Uxin in the middle of 2019.