Chinese e-commerce giant Alibaba has agreed to acquire a controlling stake in grocery retailer Sun Art from Auchan for approximately $3.6 billion.
Alibaba acquired a 36% stake in Sun Art in 2017, and has now increased its holding to 72%.
The move indicates “Alibaba’s commitment to Sun Art and its strategy to integrate online and offline resources in China’s retail sector”, the company said.
With over 400 hypermarkets and supermarkets, Sun Art is said to be one of the largest grocery retailers in China.
Alibaba chairman and CEO Daniel Zhang said: “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”.
Source: Business Wire