Alibaba, Sunning join force

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Added On August 12, 2015

Alibaba, China's largest e-commerce company, and Suning, the country's top electronics store chain, have inked a multi-billion dollar collaboration deal.

Under it, Alibaba will taking a 20 percent stake in Suning, indicating the e-commerce powerhouse is expanding into the brick-and-mortar arena.

The two companies announced the deal worth a total of nearly 7 billion U.S. dollars on Monday. 

Alibaba will invest 28.3 billion yuan, or about 4.63 billion U.S. dollars to become the largest shareholder in Suning. 

At the same time, the Chinese consumer electronics retailer will invest up to 14 billion yuan, or about 2.22 billion dollars in Alibaba, taking over one percent of the stake. 

With the deal, Alibaba said,  the two companies will collaborate on e-commerce, logistics and other businesses. Suning will also open a flagship store on Alibaba's business-to-consumer platform known as Tmall.com.