Alibaba Group Holding Ltd. is reportedly on the verge of a major merger with its South Korean operations, E-Mart Inc., in a deal valued at approximately $4 billion. The move aims to bolster their position in South Korea’s competitive online retail market.
The potential joint venture would combine e-commerce assets from both companies, creating a stronger entity to challenge local competitors such as Naver Corp. and Coupang Inc. Discussions are ongoing, with an announcement possible as early as this week, according to Bloomberg.
This deal comes as Alibaba seeks to expand its international presence amid slowing growth in its core Chinese market. E-Mart has been actively growing its e-commerce segment, including a 2021 acquisition of eBay’s South Korean marketplace for roughly $3 billion.
The merger is part of Alibaba’s broader strategy to refocus on its core e-commerce operations. The company announced plans to divest non-essential assets earlier this year, including its grocery business Freshippo and retailer RT-Mart.
Alibaba’s recent investment of $71.4 million in South Korean apparel brand Ably Corp has also highlighted the company’s growing interest in the market. This investment valued Ably at over $1 billion, making it the country’s first unicorn of 2024.
As the potential merger nears completion, it marks a significant development for Alibaba’s efforts to expand its presence in South Korea and challenge local competitors.
Source: https://www.benzinga.com/news/24/12/42680655/alibaba-nears-4b-e-commerce-merger-with-south-koreas-e-mart-report