Chinese online retailer Alibaba is snapping up a majority stake in south-east Asian rival Lazada in a deal worth about US$1bn.
Alibaba plans to buy about US$500mln of new shares in Singapore's Lazada, as well as to purchase shares from some existing shareholders.
The company, founded by Jack Ma, said the move would allow it to cash in on increasingly affluent markets in the region.
Alibaba president Michael Evans said: "With the investment in Lazada, Alibaba gains access to a platform with a large and growing consumer base outside China."
Lazada's chief executive Max Bittner added: "The transaction will help us to accelerate our goal to provide the 560 million consumers in the region access to the broadest and most unique assortment of products."
Tesco (LON:TSCO) will sell an 8.6% equity stake in Lazada for US$129mln, reducing its stake to 8.3%.
The supermarket group plans to use proceeds from the deal for general working capital.
Germany's Rocket Internet will sell a 9.1% stake in Lazada for US$137mln in cash, leaving it with an 8.8% stake.