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Photo = Homeplus |
[Alpha Biz= Paul Lee] Homeplus is seeking a new owner through a pre-court approval M&A process as part of its corporate rehabilitation, but so far the pool of viable bidders remains uncertain.
While both domestic and foreign e-commerce and platform players have been floated as potential acquirers, hurdles such as job succession obligations and foreign capital regulations are likely to complicate the deal. The sellers aim to designate a preferred bidder in September, yet industry observers warn that finding one will not be easy.
According to investment banking (IB) sources on August 23, Homeplus has been proceeding with a pre-approval M&A under the authorization of the Seoul Bankruptcy Court since June. Sale advisor Samil PwC has distributed teaser letters to potential bidders, with the target of selecting a preferred bidder in September and completing all related procedures, including creditors’ meetings, by November.
Following the formal sale announcement, multiple companies have been mentioned as possible suitors, but most have denied interest. In particular, speculation arose that CJ Group had conducted preliminary due diligence through affiliates CJ CheilJedang, CJ Foodville, and CJ Freshway after receiving the teaser, but CJ publicly dismissed the rumors, saying “no discussions have taken place regarding Homeplus acquisition.”
Traditional retail giants such as E-Mart and Lotte, along with e-commerce platforms like Coupang and Naver, have also been named, as well as Chinese players including Temu, AliExpress, and JD.com. However, analysts note that large Korean retailers face weak hypermarket performance and limited financial capacity, making them unlikely candidates despite the potential to expand market share.
By contrast, Coupang and Naver possess significant capital and strong e-commerce capabilities, raising the possibility of synergy if they proceed. Yet their lack of offline retail operating experience and limited expertise in dealing with powerful labor unions are seen as key challenges. For Chinese firms, strong interest in entering the Korean market exists, but navigating Korea’s restrictions on foreign ownership could prove a significant obstacle.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
