Ctrip acquires Qunar stake in share swap deal

Ctrip.com International has effectively acquired its rival, Qunar, following a share swap deal with Baidu.

Baidu has exchanged approximately 190 million shares in Qunar for almost 11.5 million Ctrip shares. This gives Baidu a 25% stake in Ctrip, while Ctrip takes a 45% stake in Qunar, resulting in the effective merger of two of China’s largest online travel companies.

Ctrip and Qunar will combine their products and services, according to a statement, while Baidu said it expects to “continue its existing business cooperation with Qunar”.

“We are excited by this transaction, which we believe will help build a healthy travel ecosystem in China,” said James Liang, chairman & CEO of Ctrip. “This milestone transaction will enable us to focus on providing the best travel products and services to our travellers. We believe this will create greater value to our customers, partners and shareholders in the future.”

“This transaction… creates value for our shareholders and demonstrates Baidu’s continuing commitment to online travel, an industry with tremendous potential ahead,” said Robin Li, chairman & CEO of Baidu. “We are happy with Qunar’s accomplishments, and we look forward to working with the leading players in the industry.”

This week’s deal marks the latest step in Ctrip’s efforts to dominate the China’s online travel sector. In May this year the Shanghai-based company acquired a 37.6% stake in another Chinese OTA, eLong. It also had an earlier bid for Qunar rejected.

It was also revealed this week that the Priceline Group has increased its stake in Ctrip to 12.6%, following an initial investment in the Chinese company in May.

sourced:traveldailymedia.com