Breaking! The giant announces a major acquisition, surging before the market opens!

【Introduction】Meituan Plans to Acquire Dingdong for $717 Million

Rumors Confirmed!

On February 5th after market close, Meituan announced that the company intends to acquire all issued shares of Dingdong, a leading fresh produce e-commerce company in Mainland China, for $717 million. The transaction parties signed a share transfer agreement during the non-trading hours on February 5th.

According to the agreement, the transferor can withdraw up to $280 million from the target group, but must ensure that the target group’s net cash remains no less than $150 million. Upon completion of the acquisition, Dingdong will become an indirectly wholly-owned subsidiary of Meituan, and its financial performance will be consolidated into Meituan’s financial statements.

On February 5th, market rumors circulated that Meituan is advancing the acquisition of Dingdong, and multiple rounds of merger negotiations have taken place between the two parties.

Dingdong Maicai was founded in 2017 and listed on the New York Stock Exchange in 2021. In the third quarter of 2025, the company achieved revenue of 6.66 billion yuan, setting a quarterly record; net profit was 80 million yuan, maintaining profitability under GAAP standards for seven consecutive quarters.

Meituan stated in the announcement that the company highly values its instant retail business, and this transaction aligns with its long-term development plan in the instant retail sector. Dingdong is a leading player in the domestic instant retail field, pursuing the理念 of “good users, good products, good service, good mindset,” which closely aligns with Meituan’s mission to “help everyone eat better and live better.”

Meituan also mentioned that by September 2025, Dingdong operates over 1,000 front warehouses across China, with more than 7 million monthly active buyers. Dingdong possesses top-tier supply chain capabilities in the market, with a high rate of direct sourcing from fresh produce origins, a rich product matrix of private brands, high repurchase rates, and strong consumer loyalty. This transaction will help maximize the advantages of both parties in product strength, technology, and operations, providing consumers with better shopping and delivery experiences.

Notably, currently, Meituan’s Xiaoxiang Supermarket and Dingdong Maicai are the two main players in the front warehouse fresh instant retail track. Industry insiders believe that the combined number of front warehouses after the merger will create an overwhelming advantage, potentially transforming the market landscape.

Dingdong Maicai founder Liang Changlin stated in an all-hands letter released on February 5th that after the merger, Dingdong’s core competitiveness will not disappear but will instead play a greater role on a larger platform. “This is the convergence of two strong streams, which will surely flow into a broader ocean.”

Liang Changlin also promised that Dingdong Maicai’s business and team will remain stable, and employees will continue to have a very stable development platform.

Regarding stock prices, as of the time of writing, Dingdong Maicai’s US stock pre-market price was $3.35 per share, up nearly 4.7%.