Alibaba pushes further into Chinese logistics market with plans to buy stake in STO Express

By Laura Mullan
Alibaba is continuing its push into the logistics sector with plans to buy a stake in Chinese courier service firm STO Express. The deal represents the...

Alibaba is continuing its push into the logistics sector with plans to buy a stake in Chinese courier service firm STO Express.

The deal represents the Chinese technology company’s fourth investment in an express courier firm.

To date, Alibaba owns 10% of Chinese courier ZTO, 11% of YTO, and 27.9% of Best Logistics.

In 2017, the company also invested an additional $807mn in Cainiao to gain a controlling stake in the firm.

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On Monday (11 March), STO Express announced that its controlling shareholder, Shanghai Deyin Investment Holdings Co. Ltd., plans to create a new subsidiary that will own a 29.9% stake in the courier firm.

Alibaba says it will pay 4.66bn yuan (US$693.3mn) for a 49% stake in the new subsidiary and, in turn, it will hold more than 14% of STO Express.

In a statement, Alibaba confirmed its investment in "one of the top five express delivery companies in China".

"We will deepen our existing collaboration with STO in technology, last-mile delivery across China and New Retail logistics," the company said.

"This investment is a step forward in our pursuit of the goal of 24-hour-delivery anywhere in China and 72 hours globally.”

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