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Alibaba in talks on stake in China operations of Germany’s Metro

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DUESSELDORF/ HONG KONG: Chinese e-commerce giant Alibaba Group Holding Ltd is in talks with Germany’s Metro about taking a stake in the German wholesaler’s China operations, three sources told Reuters. Metro and Alibaba declined to comment. The talks are at an early stage and could still fall apart, the sources said.


Alibaba’s interest comes after rival Tencent last year signed a partnership deal with France’s Carrefour.


US-listed Alibaba, which runs consumer-facing online shopping platforms Taobao and TMall and food delivery app Ele.me, is looking to develop a business-focused retail strategy, said one of the sources. Teaming up with a wholesaler like Metro could also bring synergy to its fresh produce units Hema and Yiguo, the source added.


Any deal would add to the HK$22.4 billion ($2.87 billion) Alibaba spent in 2017 on a major stake in China’s top hypermart operator, Sun Art Retail Group Ltd, as part of a push to build big-data capabilities in the offline retail market.


For its part, Metro was once a sprawling retail conglomerate but has been restructuring in recent years to focus on its core cash-and-carry business, selling Kaufhof department stores and then splitting from consumer electronics group Ceconomy.


It is also trying to offload its loss-making Real hypermarkets chain, saying on Tuesday that the sale is progressing.


Metro shares, which have gained 16 per cent this year on speculation of a possible bid for the company and news on divestments, were up 0.6 per cent. — Reuters


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