Alibaba Buying Into Sun Art Retail for $2.9B

Alibaba is acquiring a 77% stake in China's largest hypermarket operator, Sun Art Retail, for $2.9 billion. This move is part of Jack Ma's strategy to expand Alibaba's presence in the new retail sector, blending online and offline shopping experiences. The acquisition aligns with similar strategies by Amazon, but Alibaba has a competitive edge due to its existing investments in other Chinese retailers. Sun Art Retail, listed in Hong Kong, will benefit from this investment as it faces slowing sales growth. The acquisition aims to enhance Alibaba's distribution network across China, leveraging Sun Art's 400 hypermarkets.

What is the value of the controlling stake Alibaba is acquiring in Sun Art Retail?

• $4.2 billion

• $3.5 billion

• $2.9 billion

• $1.5 billion

Which other major company is pursuing a similar retail strategy as Alibaba?

• Google

• Facebook

• Microsoft

• Amazon

Which company did Alibaba previously invest in as part of its move into brick-and-mortar retail?

• Walmart

• Carrefour

• Suning Commerce

• Tesco

What is the significance of Sun Art Retail in Alibaba's strategy?

• It is a technology acquisition.

• It provides a network of 400 hypermarkets.

• It is Alibaba's first online venture.

• It is Alibaba's entry into the European market.

What is the primary goal of Alibaba's acquisition of Sun Art Retail?

• To develop new technology.

• To compete with Walmart.

• To enhance last-mile distribution.

• To enter the American market.