China's largest provider of on-demand online services Meituan-Dianping officially announced Wednesday it is taking full control of the leading Chinese bike-sharing company Beijing Mobike Technology Co Ltd for an undisclosed amount, dealing a blow to its biggest rival Didi Chuxing.

According to an announcement by Meituan-Dianping, it has inked a deal with Mobike to buy 100 percent of the bike-sharing startup. Wang Xing, CEO of Meituan-Dianping, will act as chairman of the board for Mobike.

"We look highly to the development of Mobike as well as prospects of intelligent transportation. We will continue to support Mobike in technological innovation to help customers live better," said Wang Xing, CEO of Meituan-Dianping.

Mobike will continue to operate independently with Wang Xiaofeng and Hu Weiwei remaining as CEO and president, respectively.

Media reported earlier that the acquisition is expected to hit $2.7 billion, including $1.2 billion in cash and $1.5 billion in equity.

The acquisition also marks the mounting intensified battle between two major Chinese tech giants—Tencent Holdings Ltd and Alibaba Group Holding Ltd. Tencent is a major holder in both Meituan-Dianping and Mobike, while Mobike's rival Ofo is backed by Alibaba.

With 320 million active users using its platforms and more than 4 million merchants, Meituan-Dianping has become the country's largest group-buying and dining information platform.

The Beijing-based company is also reportedly preparing for an initial public offering in Hong Kong as early as this year.

With more than 200 million users, Mobike's orange dockless shared bikes are now crowding sidewalks in over 200 cities in countries including Singapore, the United Kingdom, Germany and Australia.

A recent report, released by mobile research institution Cheetah Lab in March this year, shows that Chinese bike-sharing behemoth Ofo Inc has taken the top spot in the industry globally, reporting the highest weekly active penetration rate. Its archrival Mobike ranked second.