In a major take over, Alibaba Group Holding Limited has decided to invest USD 3.6 billion in Sun Art Retail Group, which will double its stake in the company. The step of overtaking one of China’s biggest hypermarkets will leave no scope for rivals to come to terms with Alibaba in the growing e-commerce market.
The Jack Ma owned company is trying to purchase a direct and indirect stake in the grocery chain business by buying equities in Auchan Retail International. It wants to get around 72 per cent of stakes. Besides, it is thinking of offering shareholders to buy the rest of Sun Art shares.
As per Daniel Zhang, CEO of Alibaba, the pathway into the grocery business and physical retail is a milestone of expansion for the company.
Notably, under RTMart and Auchan brands, Sun Art runs hundreds of hypermarkets in China.