Dingdong agrees to sell China business to Meituan unit for $717m

The deal covers all shares of Dingdong Fresh.

Dingdong (Cayman) Limited said it has signed a definitive agreement to sell its China operations to Two Hearts Investments Limited, a wholly owned subsidiary of Meituan (HKEX: 3690), in a transaction valued at $717m in cash.

The deal covers all shares of Dingdong Fresh Holding Limited, a British Virgin Islands–registered subsidiary that controls nearly all of Dingdong’s mainland China business. Dingdong’s international operations are excluded and will remain with the company after a planned pre-closing reorganisation.

Dingdong’s board approved the transaction, which is subject to regulatory clearances, including antitrust approval, and a shareholder vote at an extraordinary general meeting.

Under the agreement, the $717m purchase price is based on the company’s 31 December 2025 balance sheet and may be adjusted for cash levels, working capital and other items.

Before closing, Dingdong (Cayman) Limited will receive up to $280m in cash from the target group, provided at least $150m remains in the China business.

Meituan’s subsidiary will pay 90% of the final amount at closing, with the remaining 10% due after Dingdong settles transaction-related taxes.