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Alibaba to boost its stake to 72% in hypermarket operator Sun Art in $3.6 billion deal

Alibaba, which already owned 21% of Sun Art through a unit, will raise its stake to around 72% through the acquisition of a similar stake in A-RT Retail Holdings, who owns 51% of Sun Art

twitter-logoReuters | October 19, 2020 | Updated 11:56 IST
Alibaba to boost its stake to 72% in hypermarket operator Sun Art in $3.6 billion deal
Alibaba added that Peter Huang would be appointed chairman of Sun Art on top of his current role as chief executive officer

Alibaba Group Holdings said on Monday it will invest $3.6 billion to boost its stake in hypermarket operator Sun Art Retail Group Ltd, gaining further ground in China's booming retail market.

The e-commerce giant is hoping to further leverage its digital presence to support Sun Art's 481 hypermarkets and three mid-size supermarkets in China as the coronavirus pandemic accelerates the shift by customers online.

Alibaba, which already owned 21% of Sun Art through a unit, will raise its stake to around 72% through the acquisition of a similar stake in A-RT Retail Holdings, who owns 51% of Sun Art.

"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," Alibaba Chairman and Chief Executive Officer Daniel Zhang said in a statement.

Alibaba added that Peter Huang would be appointed chairman of Sun Art on top of his current role as chief executive officer.

Also read: Ant Group gets approval from China's securities regulator for Hong Kong part of dual-listing

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