Alibaba announced Monday that it is investing $3.6 billion through its China Taobao subsidiary to acquire a 70.94 percent stake in French retail group Auchan and its subsidiary Jixin Holdings Ltd. According to AFP, it’s Auchan’s turn to leave the Chinese market, after Carrefour or Tesco.
Auchan Retail Group said in a statement Monday that “three years after signing an alliance with Alibaba,” the group’s affiliate “accepts Alibaba’s offer to acquire all of its shares in SunArt.
Alibaba, the Chinese e-commerce giant, also announced Monday that it is spending $3.6 billion to buy a controlling stake in Gao Xin Retail, increasing its stake to about 72 percent. Alibaba will thus be able to strengthen its grip on China’s vast e-commerce sector, dominating the RT-Mart branded stores. Jixin Holdings holds about 51 percent of Gao Xin Retail’s stake. After the purchase, Alibaba, along with its affiliates, will own approximately 72% of GaoXin Retail. This will allow Alibaba to strengthen its grip on China’s vast e-commerce sector, as the company looks to attract new customers who have turned online for groceries, fresh food, and healthcare products in the wake of the new coronavirus outbreak.
Gao Xin Retail was founded in 2000 by Auchan and the Ruentex Group, an operating “alliance” that Alibaba joined in 2017 with about one-third ownership of Gao Xin Retail. Since then, Alibaba has quickly moved to transform Gao Xin Retail from a traditional brick-and-mortar hypermarket into an online grocery center.
Alibaba noted in a statement on Monday that “Gao Xin Retail has made significant progress in its digital transformation. Gao Xin Retail operates its hypermarket business under two well-known brands, “Auchan” and “RT-Mart”. As of December 31, 2019, Gao Xin Retail had 486 stores across China with a total gross floor area of approximately 13 million square meters.
Recent Comments