Advertisement
Canada markets closed

  • S&P/TSX

    21,807.37
    +98.93 (+0.46%)
     

  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     

  • DOW

    37,986.40
    +211.02 (+0.56%)
     

  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     

  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     

  • Bitcoin CAD

    87,929.07
    +2,885.96 (+3.39%)
     

  • CMC Crypto 200

    1,371.97
    +59.34 (+4.52%)
     

  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     

  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     

  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     

  • NASDAQ

    15,282.01
    -319.49 (-2.05%)
     

  • VOLATILITY

    18.71
    +0.71 (+3.94%)
     

  • FTSE

    7,895.85
    +18.80 (+0.24%)
     

  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     

  • CAD/EUR

    0.6824
    +0.0003 (+0.04%)
     

Alibaba shops for hypermarket chain Sun Art in $3.6 billion deal

Reuters
Updated ·2 min read
FILE PHOTO: An employee carries shopping carts into Sun Art Retail Group's Auchan hypermarket store in Beijing,

(Reuters) - Alibaba Group Holdings <BABA.N> <9988.HK> said on Monday it will invest $3.6 billion to acquire a controlling stake in hypermarket operator Sun Art Retail Group Ltd <6808.HK>, gaining further ground in China's 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. The move comes as Alibaba steadily expands its presence in China's offline retail sector, as growth in traditional e-commerce slows.

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.

ADVERTISEMENT

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

Shares of Sun Art soared more than 27% by lunchtime on Monday after Alibaba made the announcement.

Alibaba has expanded outlets across China for Freshippo, a supermarket chain that doubles as an online delivery service. Alibaba operates 214 Freshippo outlets as of its most recent earnings report.

It also has worked with mom-and-pop convenience store owners to offer technology and data analytics services.

Alibaba's e-commerce rivals in China have made similar forays into brick-and-mortar retail.

Online retailer JD.Com Inc <9618.HK> runs a brick-and-mortar grocery store called 7Fresh.

Pinduoduo Inc <PDD.O>, the fast-growing e-commerce site known for budget deals on bulk purchases, bought a stake in home-appliance retailer Gome Retail Holdings Inc <0493.HK> in August for $200 million.

(Reporting by Nikhil Kurian Nainan in Bengaluru and Josh Horwitz in Shanghai; Editing by Stephen Coates)