According to latest reports e-commerce, titan Alibaba Group Holdings is set to spend $3.6 billion to bolster its stake in hypermarket operator Sun Art Retail Group Ltd, taking swift control in China’s retail market.
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Following the news, Sun Art stock price surged almost 21% at the opening. Alibaba, with possession of 21% of Sun Art through stake, is now aiming to increase its share to around 72% through the takeover of a similar stake in A-RT Retail Holdings, who owns 51% of Sun Art.
The online business firm is purchasing the stake from Auchan Retail International, the French conglomerate that launched two of China’s largest supermarket chains.
The latest move arrives as Alibaba firmly swells its existence in China’s retail sector, as development in customary e-commerce slackens. It is reported that the Company is aiming to offer its digital technology to support Sun Art’s 481 hypermarkets and three mid-size supermarkets in China.
Reports said that Alibaba will appoint Peter Huang as a chairman of Sun Art on top of his existing role as CEO.
Furthermore, Alibaba has extended its shares in Freshippo, a supermarket firm that doubles as an online delivery service. Alibaba operates 214 Freshippo outlets across the country. The company has also offered its tech and data analytics services to the mom-and-pop convenience store owners.
