AliExpress denies talks over acquisition of Homeplus Express

AliExpress is not in discussions regarding a merger and acquisition (M&A) deal with the domestic retail chain Homeplus, the Chinese e-commerce platform said on Tuesday.

Chinese e-commerce platform AliExpress [ALIEXPRESS]

AliExpress is not in discussions regarding a merger and acquisition (M&A) deal with the domestic retail chain Homeplus, the Chinese e-commerce platform said on Tuesday.

Local news outlets previously reported that MBK Partners, the largest shareholder of Homeplus, was considering AliExpress as a potential buyer for its supermarket unit, Homeplus Express. AliExpress Korea addressed the speculation in a statement on Tuesday, saying, “AliExpress Korea is not in discussions to form an M&A with a domestic retail company.”

“We will continue to prioritize consumer rights and their interests, and do our best to coexist with Korean sellers in the Korean market,” the online retailer added. In early June, MBK Partners said it was reviewing a trade sale opportunity for Homeplus Express. The firm had appointed Morgan Stanley to oversee the sale, with financial industry insiders suggesting the investment bank would reach out to approximately 10 major domestic and international retail companies and e-commerce platforms.

Homeplus Express is a chain of mid-sized supermarkets primarily serving neighborhoods. It maintains a market share of over 20 percent in competition with similar supermarket franchises GS The Fresh, Emart Everyday and Lotte Super.

The retailer operates around 300 offline stores in Korea, of which 75 percent are located in greater Seoul. It saw surges in sales in the first quarter of this year on the back of its Instant Delivery service, which makes deliveries within an hour for customers who live within a 2.5-kilometer radius of a Homeplus store, Homeplus Express said.

BY KIM JU-YEON [kim.juyeon2@joongang.co.kr]