• Domestic rivals actively complain to SAMR
• Deal attracts high-level government attention

Food delivery platform Meituan’s proposed USD 717m acquisition of the China unit of fresh grocery e-commerce company Dingdong appears to be facing significant regulatory headwinds, according to two sources familiar with the matter.

The deal has faced substantial challenges following the State Administration for Market Regulation (SAMR)’s formal acceptance of the deal for review, the first source said. Domestic competitors to Meituan have been actively lodging complaints with SAMR, while the transaction has also drawn attention from senior levels of the Chinese government, the same source said.

The deal is currently undergoing SAMR’s normal review procedure, both sources said.

In July, this news service reported that the deal parties had submitted a merger review filing to SAMR, and that Meituan had been busy responding to requests for information (RFIs) from the regulator. In late May, this news service reported that, prior to the filing, Meituan had engaged with SAMR in pre-notification communications, during which the regulator discussed the appropriate definition of the relevant market with the companies.

In Dingdong’s 2Q26 results released on 20 August, the company said the transaction remained pending and subject to regulatory approvals, including antitrust clearance from SAMR.

Meituan announced the agreement to acquire Dingdong’s China unit on 5 February. The deal carries an initial long stop date of February 2027, which may be extended by mutual agreement. Under the terms of the deal, Meituan would be required to pay a USD 75m termination fee if it fails to satisfy certain material conditions within its control, fails to cooperate in regulatory filings, or if the transaction is terminated and antitrust approval or certain other regulatory clearance is not secured.

Dingdong and Meituan did not respond to requests for comment.

SAMR does not comment on ongoing deals.