Alibaba is selling majority stake in Sun Art Retail for $1.6 billion to focus on e-commerce.

From Investing.com: 2025-01-01 19:32:08

Alibaba Group Holding announced the sale of its majority stake in Sun Art Retail Group to DCP Capital for $1.58 billion. The move is part of Alibaba’s strategy to focus on core businesses and enhance shareholder return. Alibaba acquired its stake in Sun Art in 2020 for $3.6 billion to integrate digital expertise with the hypermarket chain’s network.

The sale of Sun Art is in line with Alibaba’s plan to streamline operations and prioritize e-commerce activities. The company is also offloading its Chinese department store unit, Intime, despite expecting a $1.3 billion financial loss. Alibaba recently revealed plans to merge domestic and international e-commerce platforms to boost efficiency in the face of growing competition.

Proceeds from the Sun Art sale will be used for business development, shareholder returns, and general corporate purposes. Alibaba aims to optimize its operations and stay competitive in the market by focusing on its core strengths in the e-commerce sector.



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