China-based Alibaba is preparing to merge with E-Mart, one of the country’s leading retail chains, in a 4 billion dollar deal to increase its competitiveness in the dynamic structure of South Korea’s e-commerce sector.
E-Mart is positioned as one of the largest retail chains in South Korea with its wide product range and affordable price policy. Alibaba wants to strengthen its presence in the country by joining forces with E-Mart, which has a wide customer base with more than 160 stores.
Alibaba started to focus on its activities in the international market after its e-commerce operations in China slowed down. Its shares have gained nearly 11% on the Hong Kong Stock Exchange this year, but posted a weak performance in the third quarter.
The duo, which aims to gain an advantage over local rivals such as Naver Corp. and Coupang by joining forces, did not make any press release on the subject. Sources close to the company said the details of the deal have been finalized but talks are still ongoing.
