Chinese ride-hailing giant Didi Chuxing is reportedly closing an acquisition deal of ofo, the last remaining major independent player in China’s bike-rental industry, local media reported citing people familiar with the matter. The source disclosed that Didi already sent due diligence team to ofo over the past two to three weeks.

The two parties are still bargaining on ofo’s valuation, the report added. Local media once reported Didi’s offer for ofo is only around $1.5 billion, that’s around half of Mobike’s valuation and far lower than the company’s expectations. As ofo’s cash strain becomes worse, Didi is gradually lowering the price, said the source to local media, adding that price offered by Alibaba is even lower.

Ofo denied the rumor in an official statement, adding, “As a top and the only major independent bike-rental company, ofo pioneered the growth of the bike-rental industry. We will continue to serve the users and contribute our efforts to solve traffic congestion and air pollution problems in cities.”

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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.