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China’s Meituan Agrees to $15 Billion Dianping Merger

  • Tie-up creates one of the largest providers of local services
  • Deal will pile pressure on Baidu as O2O market expands
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Two Chinese startups separately backed by Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have agreed to a merger that will create a $15 billion provider of local services including restaurant reviews and movie bookings, people with knowledge of the matter said.

The combination of, part-owned by Alibaba, with Tencent-backed may be announced as soon as Thursday, the people said, asking not to be identified because the information is private. Meituan’s shareholders will own about 60 percent of the combined company, the people said.