Hong Kong, 20th November: Earlier this week, China’s largest e-commerce company, the Alibaba Group, announced plans to form a strategic alliance with Auchan Retail S.A. and the Ruentex Group in order to explore new retail opportunities in China’s food sector.
Under the terms of the deal, Alibaba will buy a 36.16% stake in Sun Art Retail Group Limited from Ruentex for HK$22.4 billion (US$2.88 billion). Auchan will also increase its stake in Sun Art. After the transaction, the ownership of Sun Art will be as follows: Auchan (36.18%), Alibaba (36.16%) and Ruentex (4.67%).
Alibaba expects this alliance to allow the group to work more closely with retailers in order to provide a seamless online experience to consumers in China through its Internet-based platforms.
Daniel Zhang, Chief Executive Officer of the Alibaba Group, stated, “Alibaba is excited to join with our new partners to redefine traditional retail through digital transformation. Physical stores serve an indispensable role during the consumer journey, and should be enhanced through data-driven technology and personalized services in the digital economy. By fully integrating online and physical channels together with our partners, we look forward to delivering an original and delightful shopping experience to Chinese consumers.”
Source: Alibaba Group press release