Chinese e-commerce giant Alibaba Group Holding BABA is set to make its first big investment since paying a record antitrust fine as part of a crackdown on the Jack Ma-led company, Bloomberg News reported on Thursday.
What Happened: The U.S. listed e-commerce company has teamed up with the provincial government in Jiangsu, among others, to buy a stake in the retail arm of Suning, in a move that could help Alibaba boost its competitive edge against rival JD.com Inc JD.
See Also: Alibaba's Ant Secures Regulatory Approval For Consumer Finance Firm In China
The deal, which is said to be nearing completion, would add to the 20% stake that Alibaba already owns in Suning, one of China’s biggest retailer of appliances, electronics and other consumer goods. The company owned by Chinese billionaire Zhang Jindong is valued at roughly $8 billion, as per Bloomberg.
Why It Matters: The deal needs approval from the State Administration for Market Regulation, the increasingly powerful Chinese antitrust watchdog, and could be announced this week, the report noted. The development is being seen as a departure from the antitrust troubles for China after it paid a record $2.8 billion fine for anti-monopoly violations.
Price Action: Alibaba shares closed 1.16% lower at $226.78 on Wednesday.
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