Dada Group to Privatize, Become JD.com Subsidiary by 2025

Dada Group has announced the signing of a definitive agreement for a privatization transaction with JD Sunflower Investment Limited, a wholly-owned subsidiary of JD.com. The agreement involves Merger Sub, another wholly-owned subsidiary of JD Sunflower Investment Limited, merging with Dada Group. Following the merger, Dada Group will become the surviving company and a wholly-owned subsidiary of JD Sunflower Investment Limited, which is fully owned by JD.com.

The transaction is expected to be completed in the third quarter of 2025. Upon the effective date of the merger, Dada Group's American Depositary Shares (ADS) will be canceled. The special committee of the Dada Group board of directors has unanimously approved the transaction. This move signifies a strategic shift for Dada Group, as it will no longer be a publicly traded company on the NASDAQ.

JD.com, which holds over 60% of the voting power, will vote in favor of the transaction. Kroll has provided consulting advice to Dada Group's special committee, while UBS has provided consulting services to JD.com. This privatization deal underscores JD.com's commitment to consolidating its control over Dada Group, leveraging its extensive logistics network and technological capabilities to enhance the overall efficiency and competitiveness of the on-demand delivery and retail platform sector.

The merger is anticipated to streamline operations, reduce administrative costs, and foster greater integration between Dada Group and JD.com's existing services. The decision to privatize Dada Group aligns with JD.com's broader strategy of strengthening its market position and expanding its service offerings. By bringing Dada Group under its full ownership, JD.com aims to create a more cohesive and integrated ecosystem that can better serve customers and partners. This move is expected to drive innovation, improve service quality, and enhance the overall user experience.

The privatization of Dada Group is a significant development in the on-demand delivery and retail platform sector. It reflects the growing trend of consolidation and strategic partnerships within the industry, as companies seek to leverage economies of scale and technological advancements to stay competitive. The transaction is subject to customary closing conditions and regulatory approvals, and is expected to be completed in the third quarter of 2025.