China’s Alibaba seals deal for 10% of Singapore Post

SINGAPORE - Alibaba Group Holding Ltd has agreed to buy a 10% stake in Singapore Post Ltd, a move that for the first time directly connectsChina’s e-commerce system with overseas logistics. Alibaba Investment will invest US$249 million to purchase 30 million existing ordinary shares and 190.096 million new ordinary shares.

Alibaba and SingPost also signed an MoU to build an international e-commerce logistics platform, giving Alibaba access to SingPost's international logistics capabilities, infrastructure, and delivery networks.

 Alibaba founder Jack Ma has stated one of his key goals is create a strong delivery network that can reach any place in the country within 24 hours. To make that happen, Alibaba has joined with five domestic delivery companies and other partners to invest as much as RMB 100 billion within eight years to develop and manage a logistics network.

The deal with Singapore Post is a sign Alibaba is beginning to internationalise its logistics network, aiming to seize e-commerce opportunities in the potentially huge Southeast Asia market.