Alibaba takes $2.9 billion stake in food retailer
China's largest e-commerce platform has invested heavily in recent years to connect its online and offline portfolio of businesses, taking stakes in several Chinese grocers, shopping malls and department stores.
Alibaba will buy a 36 percent stake in Sun Art Retail Group from Taiwanese conglomerate Ruentex Group, leaving Alibaba and French firm Auchan Retail with roughly equal stakes in Sun Art's 446 hypermarkets that sell everything from groceries to clothes.
Hangzhou-based Alibaba has bet its future on uniting online and offline selling, executing the strategy well before US-based Amazon made its first major purchase of bricks and mortar grocer Whole Foods earlier this year.
"Alibaba is excited to join with our new partners to redefine traditional retail through digital transformation," chief executive Daniel Zhang said in a statement.
Sun Art is one of Auchan's major bets on the Chinese market and the chain of stores has been a boon for its business. The Alibaba investment will integrate Sun Art's bricks and mortar stores with the online selling giant's platform, the companies said in a press release.