Consumer electronics retailer Amazon.com Inc. and online retailer Flipkart have agreed to merge into one company, the consumer electronics retail giant Amazon.de.
The move is expected to boost Amazon’s global reach and position for the foreseeable future, with the deal likely to add a $600 million annual revenue stream for Amazon.
The new company, which has yet to be announced, will be called Amazon.in and will have a global reach of more than 4.5 billion customers, according to a regulatory filing.
Amazon.cn CEO Ankit Panda said in a statement on Thursday that the merger was the result of a strategic merger of the world’s largest consumer electronics retailers.
“Amazon.in is going to be an iconic online retailer and an innovative consumer electronics retailer, and we are looking forward to continuing to build our company’s global footprint,” he said.
Amazon, the world-famous online retailer, has already announced plans to invest $50 billion in a $5.6 billion data center in China and a $4 billion facility in India.
The deal is expected give Amazon a presence in China that exceeds that of Amazon.co.jp, which the e-commerce giant has long dominated.
Amazon is also seeking to add more foreign businesses into its portfolio, which is expected in 2018.
The company will also have a strong presence in India, a country that has been Amazon’s fastest growing market, according the filing.
It said that the transaction will be subject to regulatory approvals.
Amazon shares were up 1.9 percent in after-hours trading on Thursday, as investors were encouraged by the deal.
A deal with Flipkarte, which operates the popular grocery delivery service, is also likely.
The merged company, Flipkarts Fresh, will own about half of Amazon’s business, while the other half will be held by Amazon.net, the ecommerce site of the merged company.
The merger has not been approved by regulators in the U.S. and Europe.
Flipkarten is also an Amazon subsidiary, and the company does not have to follow all of the same strict accounting rules as Amazon.
While the combined company has a market cap of $5 billion, its revenue is likely to be much lower than Amazon.
In the U, it has a net loss of $2.3 billion.
The Amazon.it e-tailer, the website of the ethereum blockchain, has a total market cap in excess of $13 billion, according an August 2017 filing with the U-S.
Securities and Exchange Commission.