On the morning of October 19, Alibaba Group announced it would invest approximately HK$28 billion (US$3.6 billion) to increase its stake in Sun Art Retail Group, a leading Chinese hypermarket operator, to 72% and become its controlling shareholder. Image source: Alibaba announcement In the announcement, Alibaba said it had agreed to acquire a total of 70.94% equity in Jixiang Holdings Limited from Auchan Retail International S.A. and its affiliates through its subsidiary Taobao China. Jixiang Holdings Limited holds approximately 51% of Sun Art Retail Group Limited. After the share purchase, Alibaba and its affiliates will hold approximately 72% economic interest in Sun Art, and Alibaba will consolidate Sun Art into its financial statements. Alibaba Group also stated, "The strategic investment in Sun Art Retail in 2017, forming a strategic alliance with Auchan Retail and Ruentex Group, was an important step in the new retail strategy, laying the foundation for creating new opportunities and value in China's hypermarket sector." "Now, accelerated by the COVID-19 pandemic, the digitalization of consumer lifestyles and corporate operations has sped up. Alibaba looks forward to accelerating the new retail strategy through the increased stake in Sun Art and seizing development opportunities in China's hypermarket sector." Meanwhile, Sun Art Retail also announced yesterday that the sellers, Auchan Retail International and Monicole BV, had entered into a sale and purchase agreement with the offeror, Taobao China Holding Limited, an affiliate of Alibaba Group. The offeror intends to purchase a 70.94% stake in major shareholder Jixiang Holdings for a total consideration of US$3.607 billion. This morning, according to public data, Sun Art Retail's stock rose over 25%, with its market value approaching HK$100 billion! According to regulations, after the share purchase is completed, Taobao China will be required to make a mandatory unconditional general offer in cash for all issued shares of Sun Art at an offer price of HK$8.10 per share. Under the general offer, Taobao China may be required to pay an additional maximum of approximately HK$17 billion (US$2.2 billion) to acquire shares held by other shareholders. Alibaba stated that after taking a stake in Sun Art Retail, it has carried out a series of transformations and integrations. To date, it has achieved the unified integration and leadership of the RT-Mart and Auchan brands. All 484 stores under RT-Mart and Auchan supermarkets have been fully digitalized and connected to Ele.me, Taoxianda, and Tmall Supermarket for shared inventory operations. All stores offer 1-hour delivery within a 5-kilometer radius, and 180 stores support half-day delivery within a 20-kilometer radius. In fact, as early as February 27, 2017, there were rumors that Alibaba would acquire RT-Mart, with Tencent and Suning also in talks. Late that night, RT-Mart issued an announcement denying the rumors, but the next day Alibaba invested in Bailian, causing a false alarm in the retail industry, and the matter was put to rest. However, the connection between Alibaba and RT-Mart seemed far from over. On November 20, 2017, Alibaba, Auchan Retail, and Ruentex Group announced a new retail strategic cooperation. Alibaba invested approximately HK$22.4 billion (about US$2.88 billion) to directly and indirectly hold 36.16% of Sun Art Retail. Subsequently, on December 8, 2017, Sun Art Retail announced that regarding the earlier HK$22.4 billion investment and offer by Alibaba, the company had been notified by the sellers and the offeror that the closing (except for the second closing under the agreement) had taken place on December 7 in accordance with the terms and provisions of the share purchase agreement. After the closing, the offeror was required to make a mandatory unconditional general offer in cash for all issued shares (except those already owned or agreed to be acquired by the offeror and its concert parties). In June 2020, according to a report by LatePost, Alibaba Vice President and General Manager of Ling Shou Tong, Lin Xiaohai, would take over RT-Mart as CEO, reporting directly to Alibaba CEO Daniel Zhang. Huang Mingduan would continue to serve as CEO of Sun Art Retail and Chairman of RT-Mart China. To date, on the morning of October 19, 2020, Alibaba announced that it had agreed to acquire a total of 70.94% equity in Jixiang Holdings Limited from Auchan Retail International S.A. and its affiliates through its subsidiary Taobao China, for a total investment of approximately HK$28 billion (US$3.6 billion).