Leading hypermarket and supermarket chain Sun Art Retailing will be taken under the control of Chinese Tech Giant Alibaba.
The Tec titan are interested too build up its offline shopping services and obtain ground in China’s booming retail market in further.
Alibaba is the world’s largest online marketplace and China’s biggest e-commerce player which owns Taobao.
Sun Art is in of the richest families in France. It is currently controlled by a unit of Mulliez Family investments.
Alibaba will pay HK$28bn (US$3.6bn, £2.bn) to raise its stake in the Hong Kong-listed Sun Art from 21% to 72% according to a company statement.
Alibaba in 2017 formed a strategic alliance with the supermarket chain to digitize its shops and invested HK$22.4bn in the company at the time.
Sun Art has 481 hypermarkets and three mid-size supermarkets in China and China’s mighty Ant heads for a mega market debut Shenzhen resident embrace digital currency operator of hypermarket brands Auchan and RT-Mart.
Reforming shopping: –
“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,”
-Daniel Zhang, chairman and chief executive of Alibaba.
All of Sun Art’s physical stores have been integrated into Alibaba’s platforms, providing one-hour and half-day on-demand delivery.
This is through a partnership with other Alibaba businesses including its online food delivery service platform Ele.me and Cainiao, a logistics subsidiary.
It could be the biggest ever initial public offering (IPO) as it is reported to have a target of $35bn for raising capital.
Alibaba is also started to have a major player in the online payment’s world, and its financial technology offshoot Ant Group is expected to list its shares in China and Hong Kong later this month.
It could be the largest ever initial public offering (IPO) as it is reported to have a target of $35bn for raising capital.