Walmart just confirmed it's taking a big stake in China's second-largest online retailer

Walmart confirmed on Monday that it is entering an agreement with, China’s second-largest ecommerce site.

Walmart will receive 5% of’s total outstanding shares, while its Yihaodian marketplace business gets sold to, in a bid to extend its online reach in China.

Also, Sam’s Club China will open a flagship store on

The news was earlier reported by Dow Jones.

In a filing, Walmart said the agreement should increase its second-quarter earnings per share from continuing operations by $0.16-$0.19 per share.

“We’re excited about teaming up with such a strong leader in, and the potential that this new relationship creates for customers in China, as well as for our businesses,” said Walmart CEO Doug McMillon.

Walmart shares were up by less than 1% in afternoon trading following the news.

For the first quarter, Walmart bucked the trend among department-store chains when it reported earnings that were better than expected.

We are focused on building the e-commerce capabilities we need to drive growth to a higher level and deliver the seamless shopping experience for customers they desire,” the company said at the time.

NOW WATCH: Walmart is making a major change that will impact more than 5,000 stores

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