Alibaba Moves Closer to Buyout of Ele.me

* The buyout of Ele.me is an important part of Alibaba’s “New Retail” strategy

* Baidu’s exit leaves rivals Alibaba and Tencent as the dominant forces in China’s food-delivery market

E-commerce giant Alibaba Group Holdings moved closer to gaining full control of Ele.me after acquiring Baidu Inc.’s stake in China’s most-popular food-delivery startup.

Online search engine Baidu said Thursday it sold its 5% stake in Ele.me to Alibaba for $488 million. The exit of Baidu leaves its rivals Alibaba and Tencent Holdings as the dominant forces in China’s white-hot food-delivery market