Alibaba Group’s autonomous-driving arm is set to merge with Chinese robovan company Zelos Technology, creating a new entity valued at roughly $2 billion, the Wall Street Journal reported on Thursday, citing sources familiar with the matter.

The transaction, which Reuters could not immediately verify, would see Alibaba take a stake in Zelos Technology, with Zelos operating the combined business, according to the report.

As part of the merger, Alibaba’s unmanned-vehicle segment under its logistics unit Cainiao will be integrated into Zelos. The new combined business is expected to operate under the name Cainiao Robovan, boasting a fleet of more than 20,000 robovans, the WSJ added.

The report also said a Cainiao executive is expected to join the board of Zelos.

Founded in 2021, Zelos Technology focuses on autonomous logistics across postal, FMCG and express delivery services.

Neither Alibaba nor Zelos Technology immediately responded to Reuters’ request for comment.