Meituan, a major Beijing-based delivery and lifestyle services company, said on Thursday it has agreed to buy 100 percent of the China business of fresh-food, instant-retail platform Dingdong Maicai for an initial consideration of about $717 million, as the company looks to bolster its position in China's fast-growing same-day grocery segment.

The transaction, which was announced on the Hong Kong Stock Exchange, excludes Dingdong Maicai's overseas operations, which the parties said would be spun off before the deal's completion. During the transitional period, Dingdong Maicai will continue to operate under its existing model, Meituan said.

Founded in 2017, Dingdong Maicai has emerged as a leading player in China's instant grocery market with an emphasis on ultra-fast delivery. The company went public on the New York Stock Exchange in 2021.