Meituan agreed on 5 February to acquire the mainland China business of Nasdaq-listed Dingdong (Cayman), the Shanghai-based fresh-grocery delivery platform, for US$717m in cash.
Why Meituan is buying Dingdong (China business)
The purchase gives Meituan Dingdong's network of front-line warehouses and supply chain in fresh produce, complementing its own Little Elephant Supermarket grocery chain. Dingdong's founder Liang Changlin said the company's commitment to quality was aligned with Meituan's mission.
“this is not only fair and prudent pricing based on the long-term synergies between the two parties”
Deal terms and financing
Meituan's wholly owned Two Hearts Investments will buy all shares of Dingdong Fresh Holding. The price is payable 90% at closing and 10% after taxes on the transfer are settled. Before closing Dingdong may take out up to US$280m in cash, provided the unit keeps at least US$150m of net cash, and its international business will be reorganised out of the perimeter and retained by the listed company.
Regulatory approvals and timing
Closing requires approval by Dingdong shareholders, anti-monopoly clearance from the State Administration for Market Regulation and completion of the overseas carve-out. Dingdong said in its second-quarter results on 20 August that the deal remained pending. Mergermarket's PaRR reported on 29 September that SAMR had formally accepted the filing for review and that domestic rivals were lodging complaints.
Market context
Founded in 2017, Dingdong retrenched from several regions in 2023 and turned profitable, reporting non-GAAP net income of 420m yuan for 2024. Meituan, which posted a quarterly loss in the third quarter of 2025 amid a delivery price war with JD.com and Alibaba, has been expanding in instant retail.
