China’s largest e-commerce company and its biggest electronics retailer Monday unveiled an alliance in which Alibaba Group Holding Ltd. would invest more than 28 billion yuan ($4.63 billion) for a nearly 20% stake in Suning Commerce Group Ltd. As WSJ’s Lingling Wei and Gillian Wong report:
The investment would make Alibaba the second-largest shareholder in Suning. The electronics company, meanwhile, will invest up to 14 billion yuan in newly issued ordinary Alibaba shares, giving Suning up to a 1.1% interest in the e-commerce company, according to a news release Monday.
The deal is in part aimed at connecting more Internet users with brick-and-mortar offerings and expanding Alibaba’s online retail offerings. Under the partnership, Suning will open a flagship store selling consumer electronics, home appliances and baby products on Alibaba’s brand-focused Tmall.com platform, the statement said. They will also cooperate in logistics.
The Wall Street Journal reported Alibaba’s planned investment in Suning earlier Monday, citing people familiar with the matter.
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