On the 24th, Kang Hee-seok, CEO of E-Mart, said, “We are seriously considering the acquisition of eBay Korea.” On the previous day, Kang Hee-tae, CEO of Lotte Shopping (Vice Chairman), also officially announced the’exhibition’ at the regular shareholders’ meeting on the previous day, saying, “I am sufficiently interested in the acquisition of eBay Korea.” It is evaluated that the inevitable fight between the two famous retailers to become’No. 1 in e-commerce (e-commerce)’ has begun.
Lotte “Enough Interest” VS Shinsegae “Seriously Review”
At the regular shareholders’ meeting held at the E-Mart headquarters in Seongsu-dong, CEO Kang Hee-seok said, “We are looking into eBay Korea seriously. I think you can understand it in context.”
E-Mart is showing its strong will by hiring JP Morgan as an acquisition advisor. “CEO Kang makes detailed plans for the takeover and post-acquisition integration, and he is making thorough preparations to the point that he made a direct report to Vice Chairman Jeong Yong-jin” (Shinsegae official).
If it acquires eBay Korea (estimated at 20 trillion won at the end of last year), which operates Gmarket, Auction, and G9, E-Mart’s online transaction amount will increase to around 24 trillion won, including SSG.com (at the end of last year, 3,923.6 billion won).
On the 16th, E-Mart also signed a stake exchange contract with Naver for 150 billion won (100 billion won for Shinsegae International). SSG.com’s entry into Naver Shopping is a great opportunity to grow its appearance. In this regard, SSG.com announced on the day that it will start trial operation of the open market from the 20th of next month and provide a formal service during the first half of the year. Like Gmarket and 11th Street, it plans to operate’SSG Partners’, a platform exclusively for sellers (sellers).
The analysis that Shinsegae Group’s e-commerce strategy, which has been revealed so far, is aiming at multi-channels that simultaneously run SSG.com, Gmarket, and Auction, is predominantly on the’back of Naver’. An official from the investment banking (IB) industry said, “Shinsegae aims to regain the market by increasing the appearance (transaction amount) of e-commerce as much as possible, and by providing a’borderless consumption channel’ through combination with offline stores such as E-Mart, which Coupang does not have. I will be drawing a picture.”
Some point out that Naver’s’big picture’ should be paid attention. As we know that it is difficult to gain an edge against Coupang in the domestic e-commerce market with smart stores alone, it is an analysis that the strategy to acquire eBay Korea indirectly through Shinsegae.
Kakao, MBK, Q10, etc.
Lotte Shopping is also showing its will not to withdraw from the e-commerce Daejeon by acquiring the management rights of Secondhand Nara, the number one used trading platform in Korea (by transaction amount, about 5 trillion won) through a fund. When Lotte Group acquires eBay Korea, it will reach a total of 33 trillion won, including Lotte On and Used Nara.
A Lotte official said, “Shinsegae’s decision to take over eBay Korea may be a strategy to put a burden on competitors by raising the ransom price.” It is known that Lotte Group will soon select an acquisition advisor and begin the acquisition process in earnest.
A retailer official pointed out that “From the perspective of urgency, the synergy effect will be greater with Lotte’s acquisition of eBay Korea.” Unlike Shinsegae, which has invested trillions of won in SSG.com, Lotte can focus more on growing eBay Korea. An official from the IB industry said, “What Lotte is particularly interested in is the vast shopping data and developer manpower possessed by Gmarket and Auction, which are the ancestors of domestic open markets.”
Lotte and Shinsegae are burning their will to take over, but there is a possibility that unexpected variables will emerge. Kakao, who does not participate in the preliminary bidding, is an ambush. An official from the IB industry said, “Goldman Sachs, the sales organizer, is famous for competing until the end to increase the selling price.”
MBK Partners, which operates Homeplus, is watching the trend of the situation, but is a’powerful’ that cannot be ignored. However, if strategic investors (SI) such as Shinsegae Lotte beat each other and raise prices, financial investors (FI) such as MBK are likely to back down.
Q10, who participated in the preliminary bidding, is also subject to courtesy. Q10, a company founded in Singapore in 2010, is an online shopping mall started in the form of a joint venture between Gmarket founder Koo Young-bae and eBay. An official in the e-commerce industry said, “I know that the founder of Koo Young-bae has long been eager to collect the G-Market.
Reporter Park Dong-hui [email protected]