eBay Korea Acquisition, Lotte vs. Shinsegae Two-Way Battle … SKT and MBK Abstain (Update)

[Image source=Yonhap News]

[Asia Economy Reporter Jo In-kyung] The acquisition battle for eBay Korea has been narrowed down to a 'two-horse race' between retail rivals Lotte Group and Shinsegae Group.

According to the distribution industry on the 7th, Lotte Shopping and Shinsegae Group's Emart submitted letters of intent to acquire in the final bidding for the sale of eBay Korea, which closed at noon that day. The acquisition prices offered by each company have not been disclosed.

SK Telecom and MBK Partners, who participated in the preliminary bidding, did not participate in the final bidding. SK Telecom, which operates 11st, shifted its position to not participate in the acquisition, judging that eBay Korea's valuation, rumored to be up to 5 trillion won, was overestimated and that the synergy after acquisition would not be high.

eBay Korea is estimated to have recorded a transaction amount of about 17 trillion won last year, with sales of 1.3 trillion won and operating profit of 85 billion won. Based on the 161 trillion won domestic online shopping transaction amount compiled by Statistics Korea in 2020, eBay Korea's market share is about 12%. Among Lotte Shopping and Emart, the company that acquires eBay Korea will instantly increase its market share and seize an opportunity to change the domestic e-commerce landscape.

In the industry, Lotte Shopping and Emart have been known to be the most active in due diligence of eBay Korea. Emart's SSG.com has achieved remarkable results online but still has a small market share.

Lotte Shopping sees acquiring eBay Korea as a golden opportunity to make up for the sluggish performance of Lotte On, which was launched last year.

However, the acquisition price of up to 5 trillion won and the need for additional investment after acquisition are variables. Considering the intensifying competition in the online market and the declining market share of eBay Korea, there are concerns that the financial condition may deteriorate after acquisition, falling into the 'winner's curse.'

The schedule for selecting the preferred negotiation partner following the closing of the final bidding has not been announced. However, since the eBay headquarters board meeting is scheduled next week, it is highly likely that the preferred negotiation partner will be announced after the board meeting.

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