Chinese e-commerce giant Alibaba (NYSE: BABA) will spend approximately USD 3.6 billion for a controlling stake of brick-and-mortar retailer Sun Art Retail Group (HKEX: 6808), the company said on Monday.
Alibaba already held a 36.16% stake in the retailer, which owns a total of 481 hypermarkets and three supermarkets in China, with a total gross floor area of approximately 12.97 million square meters as of June, according to Sun Art’s latest financial report. The internet giant increased its share to 72%, via an investment in the holding company A-RT Retail Holdings Limited.
The initial alliance with Sun Art dates back to 2017, after which Alibaba integrated its online grocery ordering platform Taoxianda with Sun Art’s stores, offering home-delivery services.
“As the COVID-19 pandemic is accelerating the digitalization of consumer lifestyles and enterprise operations, this commitment to Sun Art serves to strengthen our ‘new retail’ vision and serve more consumers with a fully integrated experience,” said Daniel Zhang, chairman and CEO of Alibaba.
South Africa Today
Read more at VolaNews
