(Yicai Global) July 19 -- China Resources (Holdings) Co., a state-owned diversified holding company registered in Hong Kong, is investing in Meituan-Dianping, China's biggest group deals website, to improve and extend its online retail network.
As one of the state-owned enterprises directly under the State-owned Assets Supervision and Administration Commission, the China Resources Group operates multiple business lines including consumer goods, power, healthcare, real estate, gas and finance.
The group is hoping through this alliance to link more than 10,000 bricks and mortar stores of its subsidiaries with Meituan-Dianping's extensive online network. This includes outlets of supermarket chains CR Vanguard, Suguo, Tesco and Ole, 24-hour convenience store VanGO, coffeeshop Pacific Coffee and healthshop CRCare.
Meituan-Dianping was created last year through the merger of two successful Internet companies, Meituan.com, China's Groupon part owned by Alibaba Group Holding Ltd., and Tencent Holdings Ltd.-backed Dianping.com, the country's equivalent of Yelp. Alibaba has since sold its stake in Meituan-Dianping.
In January, the new company received USD3.3 billion in financing from investors led by Tencent, Sequoia Capital and China Renaissance, setting a new record in private equity financing for the Chinese Internet industry. The deal was also the largest online to offline financing in the world. Meituan-Dianping was valued at the time at over USD18 billion.