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Meituan's Dingdong Deal Makes Strategic Sense -- Market Talk

Dow Jones
Feb 06

0942 GMT - Food-delivery platform Meituan's deal to buy the Chinese business of online grocer Dingdong makes strategic sense to Nomura's Jialong Shi and Rachel Guo. The buy enables Meituan to narrow its gap with rival Alibaba Group in Shanghai, which is a key quick-commerce market, while preventing another competitor, JD.com, from catching up, the analysts say. This strategic significance appears to justify the nearly 60% premium to the market price that Meituan paid for, they add. Still, they retain their neutral rating and HK$107.00 target price on Meituan, as they reckon the quick-commerce sector's competitiveness hasn't faded but rather evolved into a protracted competition focusing on specific, important markets. Shares end 2.6% lower at HK$91.40. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

February 06, 2026 04:42 ET (09:42 GMT)

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