During Tuesday’s current trade, 58.com Inc. (NYSE:WUBA)’s shares surged 27.88% to $65, hitting its highest level today, as Financial Times stated that the company could merge with rival Ganji.com.
The Times stated that 58.com signed a memorandum of understanding (MOU) to merge with Ganji last month and that a deal could be declared Wednesday.
58.com founder and CEO Jinbo Yao and Ganji CEO Haoyong Yang would statedly serve as co-CEOs of the merged company.
58.com is the market leader and is about twice the size of Ganji.
The two companies reportedly want to cut their heavy marketing spend after the merger. 58.com’s marketing spend climbed 223% in 2014 to $73.4 million, or 28% of proceed. The marketing spend easily surpassed the company’s proceed growth of 81.8%. 58.com declared a deal in March to buy online real estate listing platform Anjuke.
58.com Inc. operates online marketplace for local merchants and consumers in the Peoples Republic of China. Its online marketplace enables local merchants and consumers to connect, share information, and conduct business.
During an afternoon trade, Builders FirstSource, Inc. (NASDAQ:BLDR)’s shares climbed 17.80% to $13.63, hitting its highest level today, as the building materials company declared it will attain privately-held lumber supplier ProBuild.
On Monday, Builders FirstSource said it will pay $1.63 billion in cash to attain ProBuild. The attainment is predictable to close sometime in the second half of 2015.
Builders FirstSource said it anticipates the attainment to be right away accretive to its earnings. ProBuild brought in $4.5 billion in proceed in 2014.
Builders FirstSource, Inc. manufactures and supplies structural and related building products for residential new construction primarily in the southern and eastern United States. The company offers prefabricated components, counting floor trusses, roof trusses, wall panels, stairs, and engineered wood; and window and door products, such as aluminum and vinyl windows, and pre-hung interior and exterior doors, in addition to assembles and distributes interior and exterior door units.
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