China's Baidu is to sell a majority stake in its financial services business, Baidu FSG, as it seeks funds to expand in the fintech sector. A consortium led by TPG Capital Management and Carlyle Group paid $1.9bn for the stake, leaving Baidu with around 42% of the unit, which will be renamed Du Xiaoman Financial. The deal comes after Chinese regulators approved an initial public offering (IPO) last month that raised $800m (£528m) from investors including SoftBank Group, Alibaba and Tencent.
China's Baidu is to sell a majority stake in its financial services business, Baidu FSG, as it seeks funds to expand in the fintech sector. A consortium led by TPG Capital Management and Carlyle Group paid $1.9bn for the stake, leaving Baidu with around 42% of the unit, which will be renamed Du Xiaoman Financial. The internet search giant hopes to take on rivals Alibaba and Tencent, which have begun making inroads in China's growing fintech market.