According to reports in French local media, French supermarket group Auchan announced its decision to leave China and sell its subsidiary and 484 stores, which are operated by Sun Art Retail, to Alibaba for EUR3 billion.
Auchan Group seeks to reduce its debts through this transaction and plans to develop retail business in new countries.
Auchan has been operating in the Chinese market for 22 years, but it has not yet been able to quickly integrate into the explosion of Internet sales. The head of Auchan's French headquarters said that by selling assets totaling about EUR3 billion, it will help the group get rid of its debts and seize new opportunities to develop in new countries.
He also said that the Chinese market has brought them a lot of inspiration. In addition, they believe Alibaba has extraordinary ability to develop Sun Art Retail. Auchan Group is France's second largest retail business group and one of the world's ten largest retailers. It was established in Lille, northern France in 1961.
The group's main businesses include large supermarkets, supermarkets and convenience stores. It is also involved in processing, manufacturing and financial industries.