Here's How Alibaba And China Are Set To Gain From Unigroup Takeover

An Alibaba Group Holding Ltd BABA led consortium emerged as the frontrunner to take over Tsinghua Unigroup Co, fetching over 50 billion yuan ($7.8 billion) to help keep China's indebted chip champion afloat, Bloomberg reports.
A successful deal could help Alibaba secure valuable chip know-how and a supply of semiconductors to fuel the country's largest cloud computing platform.
The Chinese central government is leaning towards the Alibaba-led offer, given the e-commerce giant's financial heft and the potential synergies with its cloud and semiconductor business.
The deal will likely include conditions for restructuring Unigroup's roughly 100 billion yuan-plus of onshore and offshore debt.
A deal could help Alibaba gain Beijing's favor which penalized the e-commerce giant for monopolistic behavior. The government also strives to reduce its reliance on the U.S. for chips that power everything from phones to cars.
Price Action: BABA shares traded higher by 0.21% at $168.76 in the premarket session on the last check Wednesday.