Dalian Wanda Group and Tencent Holdings Ltd will join forces to set up an internet technology firm, strengthening their position in retail.
Dalian Wanda, which Is the largest property developer in China, will own 51% of the venture and Tencent 42.48%, with the remaining 6.52% going to Gaopeng, a joint venture between Groupon and Tencent.
The project combines technology and brick-and-mortar retail and it is hoped that developing an omnichannel offering will help the businesses compete in New Retail, a space in which Alibaba is currently the world leader.