๐ AliExpress Denies M&A Talks
AliExpress, a major Chinese e-commerce platform, has denied any involvement in merger and acquisition (M&A) discussions with Homeplus, a domestic retail chain. This statement came after local media reports suggested that MBK Partners, the largest shareholder of Homeplus, was considering AliExpress as a potential buyer for its supermarket unit, Homeplus Express. "AliExpress Korea is not in discussions to form an M&A with a domestic retail company," the company stated on Tuesday.
๐ Background on Homeplus Express
Homeplus Express is a chain of mid-sized supermarkets primarily serving neighborhoods. The chain maintains a market share of over 20%, competing with similar franchises like GS The Fresh, Emart Everyday, and Lotte Super. Operating around 300 offline stores in Korea, 75% of which are located in greater Seoul, Homeplus Express saw sales surges in Q1 2024, thanks to its Instant Delivery service, offering deliveries within an hour for customers within a 2.5-kilometer radius.
๐ผ MBK Partners' Plans
In early June, MBK Partners announced it was reviewing a trade sale opportunity for Homeplus Express. The firm had appointed Morgan Stanley to oversee the sale. Financial industry insiders suggested that the investment bank would reach out to approximately 10 major domestic and international retail companies and e-commerce platforms to find a suitable buyer.
๐๏ธ AliExpress' Commitment
AliExpress emphasized its commitment to prioritizing consumer rights and supporting Korean sellers in the local market. "We will continue to prioritize consumer rights and their interests, and do our best to coexist with Korean sellers in the Korean market," the company stated. This denial of acquisition talks reassures their focus remains on enhancing their presence and operations within Korea without pursuing an M&A with Homeplus.
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