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Deepti Sri · · 1 min readReport: E-Mart to buy majority of Ebay’s South Korean business for $3b
“Ebay will sell just over 80% of its South Korean online marketplace to local retailer E-Mart for 3.44 trillion won (US$3 billion), the latest in a series of asset sales aimed at overhauling the US ecommerce company,” Bloomberg reported.
Details:
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The deal is expected to close by late this year or early next year.
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Ebay’s South Korean business yields more than a 10th of the ecommerce company’s global revenue.
- Over the next four years, E-Mart will set aside over 1 trillion won (US$886.8 million) for fulfillment centers, which will be used to deliver goods as part of its partnership with Ebay.
Context:
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E-Mart has reportedly been in talks with banks for a multi-tenor loan of about 3 trillion won (US$2.66 billion) to fund the acquisition.
- In 2015, Ebay split from PayPal after activist investors said that the payments business would be more valuable separate from the online marketplace.
Currency converted from US dollar to South Korean won: US$1 = 1128.27 won
Editing by Miguel Cordon and September Grace Mahino
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