On Monday, Alibaba Group Holdings (BABA.N9988.HK) announced that it would invest $3.6 billion to purchase a controlling stake in Sun Art Retail Group Ltd (6808.HK). The e-commerce company said that the move was made to gain further ground in China's retail market.
"As the COVID-19 pandemic is accelerating the digitalisation of consumer lifestyles and enterprise operations, this commitment to Sun Art serves to strengthen our New Retail vision and serve more consumers with a fully integrated experience," Alibaba's Chairman and Chief Executive Officer Daniel Zhang stated in an interview.
Alibaba stated that it wants to expand the company's digital presence to support Sun Art's 481 hypermarkets and three medium-size supermarkets located in China.
The Chinese multinational technology company stated that Peter Huang would be the appointed chairman of Sun Art aside from his current role as the company's chief executive officer.
On Monday, Sun Art's shares climbed by more than 27% in the afternoon trading after Alibaba's announcement.
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