Alibaba Group is reportedly in advanced talks to merge its South Korean operations with E-Mart Inc. in a deal valued at around $4 billion, according to a Benzinga report. The partnership aims to strengthen their position in South Korea’s highly competitive online retail market.
The potential deal would combine both companies’ e-commerce operations, creating a stronger competitor to local giants like Naver Corp. and Coupang Inc. (NYSE:CPNG). Discussions are ongoing, and while an announcement could come this week, finalizing the agreement may take longer, Bloomberg noted on Thursday.
The move comes as Alibaba seeks to grow internationally amid slowing growth in China. For E-Mart, this merger aligns with its strategy to expand its e-commerce footprint, following its 2021 purchase of eBay’s South Korean marketplace for $3 billion.
This development also occurs during a challenging time for South Korea, where declining consumer confidence has been impacted by political unrest after President Yoon Suk Yeol declared martial law and was impeached.
In addition to the merger talks, Alibaba recently invested $71.4 million in South Korean fashion brand Ably Corp., making it the country’s first unicorn of 2024. This investment, which valued Ably at over $1 billion, underscores Alibaba’s growing interest in the South Korean market.
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