China’s Meituan snaps up Dingdong to deepen push into fresh grocery retail
The US$717 million Dingdong acquisition highlights Meituan’s long-term bet on grocery e-commerce and on-demand consumption in China
Meituan said it would purchase all issued shares of Dingdong Fresh Holding, wholly owned by New York-listed Dingdong (Cayman) Limited, for an initial consideration of US$717 million, subject to adjustment, according to a filing with the Hong Kong stock exchange.
The deal is subject to conditions including antitrust clearance in China and completion of the required filing with the National Development and Reform Commission.
Meituan said grocery retail remained a strategic priority and that the acquisition was in line with its long-term development plans in the segment.
“More merger and acquisition deals can be expected as gargantuan delivery firms look to enlarge their business scale and enhance operating efficiency in a cutthroat market,” said Ding Haifeng, a consultant at Shanghai-based financial advisory firm Integrity. “Most small players, facing financial difficulties, are willing to be assimilated by big rivals as competition escalates.”
