Alibaba Group Holding Ltd. agreed to purchase Chinese food delivery startup company Ele.me from Baidu Inc. and other investors, Bloomberg reported Feb. 26, citing a person familiar with the matter.
The e-commerce giant already owned 23% of the startup as of May 2017, the report added.
The details of the transaction are unclear, but Ele.me was valued at $5.5 billion to $6 billion during a fund-raising in May 2017, the report added.
The acquisition, if completed, would give Alibaba the biggest share of China's online food delivery market and make it a competitor of Meituan Dianping, which is backed by Tencent Holdings Ltd.
Alibaba, Ele.me and Baidu reportedly declined to comment.