Alibaba shops for hypermarket chain in $3.6 billion deal

Alibaba Group Holdings said on Monday it will contribute $3.6 billion to help its stake in hypermarket administrator Sun Art Retail Group Ltd, increasing further ground in China’s retail market.

The web based business giant is planning to additional influence its advanced presence to help Sun Art’s 481 hypermarkets and three medium size markets in China. The move comes as Alibaba consistently extends its essence in China’s disconnected retail area, as development in conventional internet business eases back.

Alibaba, which previously possessed 21% of Sun Art through a unit, will raise its stake to around 72% through the obtaining of a comparable stake in A-RT Retail Holdings, who claims 51% of Sun Art.

“As the COVID-19 pandemic is accelerating the digitalisation of shopper ways of life and undertaking tasks, this duty to Sun Art serves to fortify our New Retail vision and serve more buyers with a completely incorporated encounter,” Alibaba Chairman and Chief Executive Officer Daniel Zhang said in an announcement.

Alibaba included that Peter Huang would be delegated director of Sun Art on head of his present part as CEO.