Alibaba to form retail alliance with Ruentex and Auchan SA
Nov 21, 2017LegalComments Off on Alibaba to form retail alliance with Ruentex and Auchan SA
Alibaba, China's e-commerce giant, is making a major move into the brick and mortar store sector. The company has announced that it's joining the Taiwan-based Ruentex Group and French-based Auchan S. A. to become the second-largest shareholder in Sun Art Retail Group Ltd.
The Sun Art Retail Group is a leading food retailer in China. It currently owns 446 wholesale stores in 29 provinces and autonomous regions, operating under the RT-Mart and Auchan store names.
Alibaba put out a press release on Monday saying that the three conglomerates will jointly explore business opportunities in China's retail sector by blending online and offline shopping services.
Alibaba has agreed to buy a stake in Sun Art from Ruentex for US$2.88 billion. That will give it a 36.16% share in Sun Art. Auchan S.A. will still hold a 36.18% share, while Ruentex will retain a 4.67% share in the company.
As of June 30th, Sun Art's stores had a total of about 12 million square meters in retail floor space.