JD.com (9618) said it has officially completed the acquisition of Hong Kong’s Kai Bo Food Supermarket, accelerating its expansion into the local retail market.
The company has established a new retail business unit, appointing Kai Bo founder Lam Hiu-ngai as its head.
According to Kai Bo’s website, the supermarket chain currently operates around 90 stores in Hong Kong.
A JD.com spokesperson stated that the acquisition marks the company’s formal entry into Hong Kong’s brick-and-mortar retail sector.
JD.com also announced a three-day promotional campaign (16-18 August), offering a 20 percent discount on the first batch of JD-supplied products available in Kai Bo stores.
Reports last month indicated that the two parties signed the agreement about four months ago, with a transaction value of HK$4 billion, including Kaibo’s retail network and properties. Payment is expected to be made in installments.
Initially, JD and Kaibo planned to establish a new joint venture by 1 August to manage operations. However, sources close to JD.com clarified that the actual transaction amount was significantly lower than reported.
STAFF REPORTER
