Deals and IPOs

Alibaba will buy Chinese food delivery app Ele.me

Key Points
  • Chinese e-commerce giant Alibaba said on Sunday it would make a full acquisition of food delivery platform Ele.me, buying all shares that it does not already own.
  • The deal implies an enterprise value of $9.5 billion for Ele.me, Alibaba said in a statement.

Chinese e-commerce giant Alibaba Group said on Sunday it would buy all shares that it does not already own in food delivery platform Ele.me.

The deal implies an enterprise value of $9.5 billion for Ele.me, Alibaba said in a statement.

Ele.me, which roughly translates as "Hungry?", is part of a fast-growing — though fiercely competitive — market in China being driven by consumers eager to make purchases on their smartphones, from groceries to cinema tickets.

Currently, Alibaba and its affiliate Ant Small and Micro Financial Services Group own about 43 percent of the outstanding voting shares of Ele.me, according to the statement.

— CNBC contributed reporting.