Alibaba Literally Doubles Down on Money-Losing UTour

Chinese e-commerce giant Alibaba Group Holding Ltd. is making a second equity investment in local tour operator UTour Group Co. Ltd., which is struggling with the impact of the Covid-19 pandemic, as Beijing heightens its scrutiny of mergers and acquisitions that may lead to a monopoly.

According to an exchange filing on Thursday, Alibaba China Technology Co. Ltd., an Alibaba subsidiary, has signed a deal to spend 240 million yuan ($38 million) on 54.8 million shares in money-losing UTour from its Chairman Feng Bin and Vice Chairman Guo Hongbin.