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Alibaba Group is acquiring the remaining 36 percent of Cainiao for $3.75 billion, abandoning plans for an initial public offering (IPO) in Hong Kong.

Cainiao was founded in 2013 by nine companies, led by Alibaba Group. They wanted to create a smart logistics network that would deliver goods within 24 hours across China. On May 28, 2015, the unit launched.

Since 2018, Cainiao has had a branch at Liege-Bierset Airport.

Given Cainiao's strategic importance to Alibaba, the e-commerce giant wants to strengthen its subsidiary. Plans to spin off the division are off the table.

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