Steven Lam, founder of GoGoVan Photo:

Tencent subsidiary and internet service platform 58 home announced on Monday that 58 Suyun will merge with Hong Kong’s logistics platform GoGoVan, Wen Wei Po reported on Tuesday morning.

The merger will lead to a new company which will continue to use GoGoVan as its English name and 58 Suyun as its Chinese name, with GoGoVan founder Steven Lam serving as CEO managing local and mainland affairs, and 58 Suyun founder Chen Xiaohua serving as chairman.

The new company is valued at US$1 billion and has set a listing in Hong Kong as its goal. It is understood that Tencent now holds a 58% of stake in 58 home.

The new company will provide delivery, freight and home moving services throughout Asia, including Hong Kong, Taiwan, Singapore, Korea and India, the report added.