Meituan to acquire Dingdong Fresh unit for US$717 million

Meituan (3690) said on Thursday that it plans to acquire the Chinese business of the fresh grocery e-commerce giant Dingdong for an initial consideration of US$717 million (HK$5.59 billion). 

Sellers may withdraw up to US$280 million from Dingdong, but must ensure net cash remains at no less than US$150 million. 

The transaction is subject to antitrust approval by the market regulator, according to an exchange filing.

As of September last year, Dingdong operated more than 1,000 front warehouses across China, with over 7 million monthly purchasing users.

Meituan said Dingdong is a leading player in China’s food and grocery retail sector, with best-in-class supply chain capabilities. The transaction will allow both parties to leverage their respective strengths in product development, technology, and operations, improving consumer experience and delivery efficiency.

Liang Changlin, founder, chairman, and chief executive of Dingdong, has agreed to a five-year non-compete and non-solicitation clause covering China's consumer-facing fresh food and grocery e-commerce sector.

Cynthia ZHONG