Alibaba Group Holding Limited (NYSE:BABA) has decided to withdraw the initial public offering (IPO) for its logistics operation Cainiao Smart Logistics Network Limited in Hong Kong, and has offered to buy all remaining shares in the unit in a change that seeks to achieve synergy between the delivery arm and core e-commerce operations. The e-commerce giant said in a filing to the Hong Kong stock exchange on March 26, 2024 that it would invest up to $3.75 billion to buy the remaining shares from minority shareholders of Cainiao Smart Logistics Network Ltd. Alibaba currently owns 64% of Cainiao. After completion of the offer, Alibaba "plans to align part of Cainiao's business to better realise strategic synergies with Taobao and Tmall Group and Alibaba International Digital Commerce Group, as well as support Cainiao to execute a long-term strategic expansion of its global logistics network," the company said in the filing.

The decision comes four months after Alibaba walked away from an earlier plan to spin off its cloud computing unit. In a sweeping restructuring plan unveiled in 2023, Alibaba said it would seek an IPO for Cainiao, and the unit submitted an A1 filing to the Hong Kong stock exchange last September. In the filing on March 26, 2024, Alibaba chairman and co-founder Joe Tsai said Alibaba had decided it was an appropriate time for the company "to double down on its investment in Cainiao", given the unit's "strategic importance".

In a later conference call on March 26, 2024, Tsai said it was crucial to achieve deep integration between Cainiao's operations and the e-commerce businesses to provide "the most competitive consumer experience". "Our priority is clear. We want to win in e-commerce by regaining market share and driving growth," he said.