China, 29th May: China’s largest e-commerce company, Alibaba Group and its subsidiary unit, Cainiao, have announced that they have agreed to acquire a 10% stake in ZTO Express, a Chinese express delivery company, for approximately US$1.38 billion.
The deal is expected to officially close in June. Under the terms of the deal, Cainiao and ZTO will collaborate to grow the “New Retail” segment, a retail model that merges online and offline commerce through technology.
Through deeper consumer engagement, New Retail links online and offline commerce, based on insights drawn from advanced technology and analytics. It also requires investment in smart supply chains, retail technologies, advanced logistics and mobile payments.
Daniel Zhang, Alibaba CEO and chair of Cainiao’s board, stated, “ZTO has been an important partner to Alibaba Group and Cainiao Network in the development of the new digital economy. The continuing expansion of New Retail is catalysing new opportunities and demands in logistics.”
Source: Alizila article