Sun Art Retail Group

History

2020: Alibaba Group purchased Sun Art Retail Group for $3.6 billion

On October 19, 2020 Alibaba Group announced purchase of the network of Sun Art Retail Group hypermarkets, largest in China, for $3.6 billion. The bargain is concluded with Auchan corporation which thereby abandons the market of Celestial Empire.

Under the terms of the agreement, Alibaba will redeem 70.94% of shares of its division of A-RT Retail Holdings Limited which owns 51% of Sun Art from Auchan Retail International. Thus, the Chinese corporation will own directly and indirectly 72% of stocks of network of hypermarkets. After the transaction of Alibaba Sun Art will include in the financial statements.

Alibaba receives control over network of product hypermarkets under the Auchan and RT-Mart brands which includes 484 large-format shops.

Alibaba Group purchased Sun Art Retail Group for $3.6 billion

In the message of Alibaba it is noted that the pandemic of a coronavirus of COVID-19 entered considerable changes to the market of product retail in China, forcing buyers to pass to online canals. Many consumers remained with online stores and after canceling of restrictions for work of physical shops. Buying the large retailer, Alibaba continues to strengthen strategy on washing out of borders between online and offline - commerce, investing in development of the services based on physical shops.

All retail stores Sun Art in China are integrated into the Taoxianda and Tmall platforms belonging to Alibaba, providing fast delivery due to cooperation with other key companies on all ecosystem of Alibaba, including Ele.me and Cainiao.

According to the South China Morning Post edition, the Alibaba company in the future can redeem the remained shares Sun Art for 17 billion Hong Kong dollars (about $2.2 billion). At this Sun Art will remain on the Hong Kong stock exchange on which stocks of the company rose in price on October 19, 2020 for 19% after the declaration of the transaction with Alibaba.^{[1] [2]}

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