Deals
Alibaba Takes Control of Delivery Business at Center of U.S. Probe
- China e-commerce giant invests $800 million in Cainiao
- Alibaba will invest $15 billion over five years for logistics
Alibaba Takes Control of Unprofitable Delivery Business
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Alibaba Group Holding Ltd. will buy control of unprofitable delivery business Cainiao for 5.3 billion yuan ($800 million) and spend billions of dollars more to expand a shipping network that spans the world’s largest e-commerce market.
China’s largest web marketplace agreed to increase its stake in Cainiao Smart Logistics Network Ltd. to 51 percent. Under the deal, Alibaba plans to consolidate Cainiao’s financials into its own books, eroding Alibaba’s bottom line, and will get an additional seat on Cainiao’s board, taking its representation to four out of seven seats, the company said in a statement Tuesday.