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Ctrip's invested companies to merge

Chinese travel services provider Ctrip.com International Ltd. on Dec. 29 said its invested companies, E-dragon Holdings Ltd. and Tongcheng Network Technology Co. Ltd., entered into an agreement to merge the two companies.

E-dragon, also known as Elong and an online reservations provider, and Tongcheng, an airline tickets provider, will form Tongcheng-Elong Holdings Ltd. The merger deal is subject to customary closing conditions.

Ctrip and Tencent Holdings Ltd. will be the major strategic shareholders of Tongcheng-Elong. Tencent's Weixin Wallet and Mobile QQ Wallet will be utilized by the new company.

The merger seeks to provide wider online travel services in China and benefit from "significant traffic via Weixin and Mobile QQ," Ctrip said.

Ctrip co-founder and Executive Chairman James Liang will be co-chairman of Tongcheng-Elong along with Zhixiang Wu, who is the co-founder, CEO and chairman of Tongcheng.

Tongcheng Network President and co-founder Heping Ma and E-dragon CEO Hao Jiang will be co-CEOs of Tongcheng-Elong.