Alibaba Group Holding Ltd. has agreed to pay $249 million for a 10.4 percent stake in Singapore Post Ltd., also known as SingPost, in a deal that could expand Alibaba’s logistics business to new markets overseas, according to a statement released by SingPost.
SingPost, Singapore’s national postal system, and Alibaba are also planning on forming a joint venture that will focus on e-commerce logistics in Southeast Asia. Aside from operations in Singapore, SingPost also has regional operations in 13 other countries.
The Alibaba-SingPost deal continues Alibaba’s recent shift toward providing logistics services for its retailers, who are currently responsible for product delivery. However, Alibaba is bulking up its logistics portfolio with a $206 million investment in American delivery logistics group Shoprunner along with this most recent investment in Singpost.
The Alibaba investment in SingPost follows numerous deals that Alibaba has made in recent months. In the past year alone, Alibaba has spent more then $3.5 billion on at least seven acquisitions, as the company prepares for an initial public offering that may reach $20 billion.