Meituan announces $717 million acquisition plan, Dingdong Maicai's US stocks rise briefly before market open

On February 5th, Dingdong Maicai (DDL.US) experienced a short-term rally in pre-market trading on the U.S. stock market, rising nearly 10% at one point.

On the same day, Meituan-W (03690.HK) announced that it plans to acquire all the issued shares of Dingdong, a leading fresh food e-commerce company in mainland China, for $717 million. According to the agreement, the transferor can withdraw up to $280 million from the target group, but the net cash of the target group must not be less than $150 million. This acquisition will make the target company an indirect wholly-owned subsidiary of Meituan, with its financial performance consolidated into Meituan’s financial statements.

According to the announcement, Dingdong is a leading fresh food e-commerce company in mainland China, founded and controlled by Liang Changlin. The target company is a wholly-owned subsidiary of Dingdong.

Meituan stated that the company highly values its grocery retail business, and this transaction fully aligns with its long-term development plan in this field. Dingdong is a leading enterprise in the domestic grocery retail sector, and its business philosophy of “providing high-quality products and services to users” aligns perfectly with Meituan’s mission of “helping people eat better and live better.” As of September 2025, Dingdong operates over 1,000 front warehouses across China, with more than 7 million active users per month. Dingdong boasts a top-tier supply chain system in the industry, with a high proportion of direct procurement for fresh products; it also has a rich lineup of private label products, with a high repurchase rate, making it popular among consumers. This transaction will help maximize the advantages of both parties in product development, technology, and operations, thereby providing consumers with a better shopping and delivery experience. Based on the above reasons, the board of directors (including independent non-executive directors) believes that this acquisition is fair and reasonable and is in the overall interest of the company and its shareholders.