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Group Holdings will acquire a controlling stake in China-based hypermarket operator Sun Art Retail Group Ltd for $ 3.6 billion, the company said on Monday.
Alibaba is steadily expanding its presence in China's retail sector as the growth of traditional e-commerce slows. The online retailer will use its online resources to support 481 Sun Art hypermarkets and three mid-size supermarkets in China.
Alibaba already owns 21% of Sun Art and will increase its stake to about 72% by acquiring a stake from A-RT Retail Holdings.
"As the COVID-19 pandemic accelerates the digitalization of consumers' lives and corporate operations, the Sun Art acquisition strengthens our vision for a new retail model and offers a fully integrated experience for more consumers," said Alibaba Chairman and CEO Daniel Zhang. Such a move will enable the company to increase its sales in such difficult times for the entire economy.

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