Another half-a-billion-dollar deal in China to start the week, as HNA Tourism confirms an equity investment and strategic co-operation agreement with Tuniu.com.
The announcement says that HNA Tourism will become the largest shareholder in Tuniu with a 24.1% stake in the business after buying $500 million-worth of newly issued shares.
In turn, "HNA Tourism will provide Tuniu with access to its premium airlines and hotels resources at a preferential rate, under fair competitive market rules."
As an domestic and outbound tours operator, with online, mobile and offline points of sale, Tuniu already has 1,200,000 package tour products on its books already, and this number is likely to increase as a result of its access to HNA Tourism.
The release says that Tuniu "is expected to acquire no less than US$100 million in products and services sourced from HNA Tourism over the next two years."
Earlier this month HNA Tourism announced an equity investment and strategic partnership with Pierre & Vacances.
Meanwhile, six months ago HNA Group - of which HNA Tourism is one of three strategic industrial conglomerates - announced that it was investing half a billion dollars to launch a brand new OTA for the Chinese market, in partnership with internet services business NetEase.
Tuniu will release its Q3 earnings later today.
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