China’s Baidu to sell majority of financial services unit for $1.9 bn
China's search engine major, Baidu Inc has raised more than $1.9 billion for its maiden spun off financial service division from TPG Capital Management LP and Carlyle Group LP as it seeks funding to take on established fintech firms in China.
The deal has come in the wake of a scenario where China's government is tightening regulations on the loans market to rein in shadow banking and push banks to cut bad debt.
The investment will give Baidu a much-needed push to narrow down the leads that its contenders Tencent Holdings Ltd and Alibaba Group Holding Ltd. have grabbed in the financial landscape and will also help it expand beyond its core internet search business.
Robin Li, Baidu Chief Executive Officer said,
I feel proud to see the financial unit has graduated. This i...