Dingdong (Cayman) Ltd. (DDL), a China-based fresh grocery e-commerce company, on Thursday said it has entered into a definitive agreement to sell its China business to Meituan (3690.HK, MPNGY, 83690.HK) for cash of up to $717 million.
Under the agreement, the company will sell all issued and outstanding shares of Dingdong Fresh Holding Ltd., its wholly owned subsidiary that holds all of the company's China operations, to Two Hearts Investments Ltd., a wholly owned subsidiary of Meituan.
The transaction is based on the balance sheet as of December 31, 2025, assumes Dingdong receives up to $280 million in cash from the China business prior to closing, while ensuring a remaining net cash of at least $150 million.
The purchase price will be paid in cash in two tranches, with 90% payable at closing and the remaining 10% payable after settlement of applicable transaction-related taxes.
The company said it plans to convene an extraordinary general meeting for shareholders to vote on the deal.
During the period between signing and closing, operating profits or losses of the China business will accrue to Meituan.
The agreement includes a five-year non-compete and non-solicitation covenant covering the fresh grocery e-commerce business in Greater China, as well as a no-shop clause restricting Dingdong from soliciting alternative offers.
The agreement also includes termination fee provisions, including a $150 million fee payable by Meituan if it fails to complete the transaction despite satisfaction of key conditions, and a $75 million fee payable by Dingdong under certain circumstances.
Meituan closed trading 1.96% higher at CNY 83.250 on the Hong Kong Stock Exchange.
In the pre-market trading, Dingdong is 2.19% higher at $3.2600 on the New York Stock Exchange.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.