Alibaba Group Holding Ltd is set to join with the country’s largest defense equipment manufacturer to promote the Beidou satellite navigation system for civilian use.
Numerous reports on Monday said the cash-flush Alibaba Group has added to its latest investment spree by inking a deal with State-owned China North Industries Group Corp for a joint venture based on the Beidou system.
The project has registered capital of 1 billion yuan ($160 million), according to Dazhihui News Agency, an organization affiliated with stock market consultancy Shanghai DZH Ltd. Dazhihui, which first broke the news online, quoted sources as saying that Alibaba has big plans for Beidou that include a further expected investment of more than 10 billion yuan.
Alibaba’s public relations office declined to comment because of the black-out period related to its IPO debuting in the United States next month. Nevertheless making investments and breaking into new sectors are not new for Alibaba, which has spent more than $5 billion since the beginning of the year and transformed its e-commerce empire into a conglomerate covering a growing number of industries, from wealth management to media and logistics.
Source: China Daily