Alibaba reportedly offered $1.5 billion to acquire the Chinese fresh food delivery platform Pupu Supermarket, competing with Meituan

According to a report by Bloomberg, Alibaba (09988) is said to have offered $1.5 billion to acquire the Chinese fresh food delivery platform Pinduoduo, triggering a bidding war; this move is part of its broader strategy to capture more online business market share from Meituan (03690). Just a few months ago, Meituan announced its acquisition of Dingdong for $717 million, beating out other bidders.

Insiders revealed that Alibaba's proposed acquisition price is more than double the previous offer made by Sunart Retail. Sunart Retail was once an affiliate of Alibaba and is currently backed by private equity firm DCP Capital, which had previously proposed a $600 million acquisition plan.

The report indicates that Alibaba is actively increasing its bid, highlighting its determination to win in the intensifying competition among China's three online business giants. The rising valuations reflect the fierce competition for scarce retail assets; Alibaba, Meituan, and JD.com (09618) are ramping up efforts to expand into local living and fresh retail businesses, which remain one of the few consumer markets where online penetration has not yet fully increased. (sl)