Alibaba is one of the largest e-commerce site in China and even across the world. They have expanded their way to foreign markets and provide a wide range of services and products. Now, stepping in Alibaba acquired a stake up to 9.99% in Swiss duty-free group Dufry. Dufry announced that it is going to enlist the ec0mmerce giant as its shareholder.
Dufry is an online travel retailer that provides services in over 65 countries and more than 400 locations. They have around 2200 shops in airports, cruisers and many other places where they provide a duty-free shopping experience for travellers worldwide. To maintain their quality of services, they have over 36,000 employees spread across their service locations.
Their tax-free retail stores have a variety of luxury global and local brands for anyone looking to have everything in one place. From wine, food, fragrances, whiskies, fashion essentials, and more one can find almost everything at their stores. Now, with the acquiring of the largest online travel retailer of North America, Hudson group, their already big enterprise is also planning to enter the retail travel department.
Details about the deal between Alibaba and Dufry
Dufry said, “Alibaba Group and Dufry AG (Dufry) have agreed to enter into a collaboration to jointly explore and invest in opportunities in China to develop the travel retail business and to enhance Dufry’s digital transformation”. Alibaba’s deal with the swiss group also involves new rights to fund the Hudson buyout of the company.
Alibaba’s deal with the company is bringing in $763 million in the company through the rights issue. This will help the Swiss group Dufry to overcome their COVID problems and fund the Hudson group properly. The company bought Hudson for $311 million at a price of $7.70 per share.
After the deal, Alibaba will be holding a 51% stake in the venture while Dufry will be having the remaining. Alibaba is going to help the company in boosting its business in online travel retail and other markets. I expect with the huge audience and network that Alibaba brings to the deal. It will play a major role in the success of Dufry’s online travel retail business.
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