Alibaba, Auchan and Ruentex form food retail alliance
Alibaba Group Holding, Auchan Retail and Ruentex Group on Monday announced a strategic alliance that brings together the three companies’ online and offline expertise to explore new retail opportunities in China’s food sector.
As part of the alliance, Alibaba Group will invest a total of 22.4 billion Hong Kong dollars (Bt94 billion) to obtain an aggregate direct and indirect stake of 36.16 per cent in Sun Art Retail Group by acquiring shares from Ruentex.
Auchan Retail is also increasing its stake in Sun Art.
The transaction will give Auchan Retail, Alibaba Group and Ruentex interests of 36.18 per cent, 36.16 per cent and 4.67 per cent in Sun Art, respectively.
Auchan Retail will continue to consolidate Sun Art in its financials following the transaction, according to the company’s release on Monday.
