China’s Ctrip expands global reach with US$1.74bn Skyscanner takeover
Majority cash deal for Edinburgh-based travel site is first US$1bn overseas deal by Chinese online travel company
Ctrip.com International, China’s leading online travel website, is planning to buy British peer Skyscanner for around £1.4 billion (US$1.74 billion) in one of the biggest acquisitions by a Chinese travel business of its overseas peer.
Skyscanner was reported last month to have put itself up for sale. The company was valued at US$1.6 billion in a funding round in January when it raised US$192 million from investors that included Malaysian sovereign wealth fund Khazanah Nasional Berhad and Yahoo Japan.
The takeover deal with Ctrip, mainly consisting of cash, is expected to be completed by the end of the year, with Skyscanner’s management remaining on board to operate the site independently under Crtip’s ownership, according to terms of the agreement.
The buyout comes as Nasdaq-listed Ctrip – considered to be one of China’s most acquisitive companies – has firmly cemented its position as the domestic travel industry’s dominant online player.
It bought its biggest rival Qunar last year and already holds key stakes in another two major competitors, Tuniu.com and eLong.
The latest deal, however, is Ctrip’s first billion-dollar takeover of an overseas peer, and comes at a time when free-spending Chinese tourists increasingly opt to travel farther afield, such as to the US and Europe for holidays. Ctrip’s shares declined 2.1 per cent to close at US$40.99 on Wednesday.
