China’s top market watchdog approved Tencent Holdings Ltd. ’s plan to privatize search-engine affiliate Sogou Inc. in a deal valued at around $2 billion that comes as the country’s technology giants face heightened antitrust scrutiny.
The unconditional blessing announced Tuesday by the State Administration of Market Regulation is likely a relief for Tencent, after the regulator last week blocked the tech conglomerate’s bid to combine the country’s two biggest game-streaming platforms.
Sogou, listed on the New York Stock Exchange, is a rival of Baidu Inc., China’s largest search-engine service provider. Tencent, which owns 39% of Sogou and controls more than half of its voting rights, proposed buying out other investors for about $2.1 billion last July.
Tencent’s shares jumped, rising 3.8% by early afternoon Tuesday in Hong Kong to 555 Hong Kong dollars, the equivalent of $71.46, per share. The city’s Hang Seng Tech index gained 2.1%.
Tencent and Sogou didn’t immediately respond to requests for comment.
