Shares of Alibaba Group (NYSE: BABA) are trading around 2% higher today to print fresh record highs.
The stock has been supported today by the news that the Chinese giant is working to buy a majority stake in the local hypermarket chain Sun Art Retail Group for $3.6 billion. This way, the giant will take control of the company’s 481 hypermarkets and 3 supermarkets in China.
Alibaba already has a 21% stake in Sun Art with plans to raise it to 72% now. As a part of the deal, Peter Huang, the current CEO of Sun Art will also become the company’s chairman, said Alibaba.
“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,” said Daniel Zhang, Chairman and CEO of Alibaba.
Moreover, Ant Group, which is partially owned Alibaba, has received permission for its planned initial public offering in Hong Kong. The fintech firm is seeking a valuation of around $280 billion.
Alibaba share price soared to new record highs at $313.81, exceeding last week’s $310.01.
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