Fitch expects that Meituan's acquisition of DingDong will have a limited financial impact and anticipates that price wars will ease starting this year

Fitch Ratings stated that Meituan (03690.HK) recently announced its plan to acquire DingDong, which will enhance its position in the instant shopping market and supplement the company's business operations. It believes that this acquisition will not have a significant impact on the group's financial status, thus its effect on creditworthiness is neutral.

In terms of business, Fitch believes that the synergies generated by expanding the coverage of the merged platform can strengthen Meituan's competitive position in the instant local retail market. Financially, the transaction is priced at USD 717 million, with terms requiring DingDong's net cash to be no less than USD 150 million. The agency expects that after fully merging with DingDong, Meituan's net cash reduction will be less than 10%, while as of the third quarter of last year, Meituan's net cash was approximately RMB 49 billion.

Additionally, DingDong's EBITDA for the 12 months ending September 2025 is approximately RMB 390 million, which is relatively small compared to Meituan's scale, accounting for less than 5% of Fitch's EBITDA forecast for Meituan in 2026. Although Meituan's EBITDA last year was pressured by substantial subsidies in the takeaway business, Fitch believes that the price war in the takeaway platform should begin to ease this year. The agency expects that the growth trajectory of Meituan's EBITDA and free cash flow will remain the main factors influencing its credit status