19 / 10 / 2020
Three years after the signing of an alliance to develop phygital food retail in China, the suitability and success of which has been well proven, Auchan Retail and Alibaba have come together to discuss the future of SunArt.
With both parties noting the unique nature of the Chinese market, Auchan Retail accepted Alibaba’s proposal to acquire its entire stake in SunArt (484 hypermarkets, 150,000 employees, largest market share for food in China).
While Auchan Retail and Alibaba will no longer work together as part of SunArt, they remain committed to technological collaborations and will continue to research opportunities for joint actions in countries where Auchan Retail has a presence, both now and in the future.
The transaction will be carried out at the equivalent price of HKD 8.10 per share, which will be the basis for a public takeover bid.
With this transaction and its withdrawal from China, Auchan Retail confirms its desire to accelerate the rollout of its “Auchan 2022” business plan at its existing sites. Through this sale of approximately €3 billion, it will thus have the financial resources to deleverage, seize any relevant opportunities in its markets, and develop in new countries.