Alibaba’s (BABA) logistics arm, Cainiao, is merging its autonomous-driving unit with China’s Zelos Technology to form a new robovan business valued at around $2B, The Wall Street Journal reported, citing people familiar with the matter.
Alibaba will gain an equity stake in Zelos Technology, while Cainiao Robovan will continue to operate as an individual brand after the merger.
The merged entity will be run by Zelos, and a Cainiao executive will join Zelos’s board, the people said.
A formal deal announcement is expected by Thursday, the report added.
