Alibaba Bids $1.5 Billion for China Grocer in Meituan Fight (1)

Alibaba Group Holding Ltd. is offering $1.5 billion to buy Chinese grocery delivery firm Pupu, initiating a bidding war as part of a broader campaign to wrest market share from online commerce rival Meituan.

China’s largest consumer internet platform’s proposed price is more than double an earlier bid from Sun Art Retail, according to people familiar with the matter. Sun Art, a former Alibaba affiliate that’s now backed by private equity firm DCP Capital, had proposed a takeover at $600 million, the people said, asking not to be identified because the sale process is confidential.

Alibaba’s proposal emerged just ...