US Markets

Alibaba to buy controlling stake in hypermarket chain Sun Art in $3.6 bln deal

Credit: REUTERS/ALY SONG

Alibaba Group Holdings said on Monday it will invest $3.6 billion to boost its stake in hypermarket operator Sun Art Retail Group Ltd, gaining further ground in China's booming retail market.

Adds breakup of deal, CEO comment

Oct 19 (Reuters) - Alibaba Group Holdings BABA.N9988.HK said on Monday it will invest $3.6 billion to boost its stake in hypermarket operator Sun Art Retail Group Ltd 6808.HK, gaining further ground in China's booming retail market.

The e-commerce giant is hoping to further leverage its digital presence to support Sun Art's 481 hypermarkets and three mid-size supermarkets in China as the coronavirus pandemic accelerates the shift by customers online.

Alibaba, which already owned 21% of Sun Art through a unit, will raise its stake to around 72% through the acquisition of a similar stake in A-RT Retail Holdings, who owns 51% of Sun Art.

"As the COVID-19 pandemic is accelerating the digitalisation 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," Alibaba Chairman and Chief Executive Officer Daniel Zhang said in a statement.

Alibaba added that Peter Huang would be appointed chairman of Sun Art on top of his current role as chief executive officer.

(Reporting by Nikhil Kurian Nainan in Bengaluru; Editing by Muralikumar Anantharaman and Stephen Coates)

((NikhilKurian.Nainan@thomsonreuters.com; Twitter: @NikhilKurianN; +91 806 182 2724;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BABA

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More