New York-listed 58.com, considered as China’s largest online classifieds marketplace, announced that it had agreed to acquire the car auction business of Uxin Limited, the country’s leading online used car dealer.
58.com said it will pay $105 million to purchase certain assets and liabilities related to Uxin’s B2B online used car auction, subject to customary closing conditions. It expects the deals to close by the first half of 2020.
The purchase markers another important step in the roll-out of the company’s new ‘all in service” strategy, according to 58.com chairman and CEO Michael Jinbo Yao.
“Uxin’s auction business directly complements our used car business. With the addition of the auction platform, we can expand the options we can offer dealers,” Jinbo said.
Once the deal is closed, both teams will quickly join forces and provide more diversified services and integrated solutions to customers and build a more effective used car trading platform, he added.
Backed by Chinese internet giant Tencent, 58.com is the operator of China’s largest online classifieds marketplace, based on monthly unique visitors both on its website and mobile applications.
The company’s online marketplace enables local business users and consumer users to connect, share information, and conduct business.
Uxin, on the other hand, has a network of over 1,300 service centers across 250 cities in China. Its platform allows consumers to purchase used cars through an integrated online platform with value-added services, including inventory, car inspection, financing, and title transfers, among others.
It also operates Uxin Auction, which caters to car dealers and primarily provides them with a comprehensive suite of solutions to source vehicles, optimizes their turnover, and facilitates cross-regional transactions.
China is one of the world’s largest auto markets and alone produces more than half of the cars across the globe. China is also the biggest used car market and the largest manufacturer of automobile sector globally.
The acquisition comes as China’s used car market is expected to reach $385 billion by the end of 2025.