Shareholders in Youku (YOKU.NYSE), the country's largest online video provider, granted approval to acquire the market's number two provider Tudou Holdings (TUDO.NASDAQ), Bloomberg reported. All stock transaction measures were approved at a meeting in Hong Kong, said Ryan Cheung, corporate finance director at Youku, without giving further details. Tudou investors will receive 1.595 American depository receipts (ADRs) - a type of security that trades like normal stock shares and is often used by foreign companies listing in the US - in Youku for each Tudou ADR held. Youku ADRs fell 2.4% to US$18.08 in Monday trading in New York, while Tudou slipped 1.8% to US$28.76 per share. The two companies account for roughly one-third of China's online video market. "Market concern about Youku has shifted from whether the deal would be completed to focusing on its market share after the merger amid intense competition with various other online video companies," Echo He, a senior analyst at Maxim Group in New York.