Alibaba puts $4.63 billion into electronics retailer
Alibabab Group Ltd said it would invest more than 28 billion yuan ($4.63 billion) for a nearly 20 percent stake in electronics retailer Suning Commerce Group Ltd, a bricks-and-mortar retail chain which once struggled to cope with Chinese consumers shifting to the Internet.
Alibaba will become Suning’s second-largest share holder after the aquisition. In return, Suning would acquire up to 14 billion yuan in newly issued Alibaba shares, giving it about a 1.1 percent stake in the e-commerce company.
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 companies said. They will also look for ways to combine Suning’s more than 1,600 physical stores with the services Alibaba and its affiliates can provide on mobile apps, such as ordering and payments.