Chinese e-commerce titan JD announced Monday that they have inked a strategic partnership with Walmart to better tap Chinese market through a combination of e-commerce and retail.

Under the deal, JD will take control of Yihaodian, an online grocery sales platform that Walmart took full ownership in July last year. JD will take over the Yihaodian brand, website and app, while Walmart will continue to operate the Yihaodian direct sales business and will become a vendor on the Yihaodian marketplace.

In exchange, Walmart will grab a 5% equity stake in JD by acquiring about 145 million shares in the online retailer, worth around $1.5 billion USD at JD’s current valuation.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.