Meituan ready for $15b merger with Dianping

Marriage of Alibaba, Tencent-backed startups could pose threat to Baidu

Two Chinese startups separately backed by Alibaba Group Holding Ltd and Tencent Holdings Ltd have agreed to a merger that will create a $15 billion provider of local services such as restaurant reviews and movie bookings, according to sources with knowledge of the matter.

The combination of Meituan.com, part-owned by Alibaba, with Tencent-backed Dianping.com may be announced as soon as Thursday, the source said, asking not to be identified.