eBay or Yogiyo, Distribution Industry's Acquisition and Merger Standoff

Shinsegae "Reviewing Synergy with Yogiyo Integration"
eBay Korea Sale Price Mentioned Up to 5 Trillion Won

[Asia Economy Reporter Jo In-kyung] The merger and acquisition battle in the distribution industry is intensifying rapidly. Lotte invested in the secondhand trading platform 'Junggonara,' and Shinsegae completed the acquisition of the online women's fashion platform 'W Concept.' Now, as the main bidding approaches for eBay Korea and Yogiyo (Delivery Hero Korea), the competition among distribution companies is becoming even fiercer.

According to industry sources on the 12th, the calculations in the distribution industry are complicated regarding Yogiyo, the second-largest delivery app market player, and eBay Korea, the number one open market. In the distribution industry, Shinsegae Group's SSG.com and MBK Partners, which owns Homeplus, have been shortlisted as qualified bidders for Yogiyo following eBay Korea.

The delivery app market is already saturated. Since new entries are virtually impossible, Yogiyo's valuation is high, around 2 trillion KRW. Therefore, there is speculation that either Shinsegae or MBK Partners, who are competing to acquire eBay Korea for about 4 trillion KRW, might give up.

A Shinsegae official said, "At present, we are reviewing whether there is synergy to be gained by linking distribution and last-mile delivery through Yogiyo," adding, "The final decision to participate in the acquisition will be made after reviewing the acquisition conditions." For the same reason, Lotte Group, GS Retail, and SK Telecom are known to have deliberated until the last moment but ultimately did not participate.

Regarding eBay Korea, the initially expected sale price of about 4 trillion KRW has risen to as much as 5 trillion KRW, accelerating the final bidding excitement. This month's 'Big Smile Day' is being held on the largest scale ever, which is also seen as an effort to raise the valuation at the last minute. The acquisition intentions of shortlisted companies such as Lotte, Shinsegae, SK Telecom, and MBK Partners are strong. If they can buy at a reasonable price, they can instantly realize economies of scale in the e-commerce market.

The biggest concern for distribution companies participating in the acquisition is losing the asset to competitors. Whether expanding the e-commerce business by acquiring eBay Korea or attempting new delivery services through Yogiyo, there is a strong sense of crisis that missing the flow of change in the distribution market once will make it difficult to recover.

An industry insider said, "For Lotte and Shinsegae, it is more painful if the other party acquires eBay Korea than if they fail to acquire it themselves," adding, "There is significant pressure to secure at least one of the two M&A deals on the table."

This content was produced with the assistance of AI translation services.