'Integrated Emart' Launches in July... Emart-Everyday Merger Approved

Emart Absorbs Everyday
Merger Corporation Launches This July
Securing Cost Competitiveness and Enhancing Operational Efficiency

Emart and Emart Everyday are merging to launch the 'Integrated Emart.' The integrated Emart plans to accelerate synergy creation by improving profitability through merged purchasing and logistics, as well as increasing customer benefits.

On the 16th, both companies held board meetings and resolved to merge. The merger contract date is April 30, and after related announcements, opinions from shareholders and creditors will be heard. The scheduled merger date is June 30, and once registration is completed on July 1, the integrated Emart corporation will be established.

Jung-gu Sunhwa-dong Emart Headquarters. Photo by Yongjun Cho jun21@

Emart explained the purpose of this merger as "to strengthen competitiveness by integrating management resources between affiliates, while promoting operational efficiency through synergy effects and achieving continuous growth." The merger has been pursued since September last year, when CEO Han Chaeyang took on the role of CEO for both companies.

The merger will be conducted by Emart absorbing Emart Everyday. Emart is the largest shareholder holding 99.3% of Emart Everyday’s shares, and the merger process will proceed as a small-scale merger replacing the shareholders' meeting with the board of directors in accordance with relevant laws. Emart plans to pay merger consideration at a fair value to minority shareholders of Emart Everyday, which will be the dissolving company. No new shares will be issued.

The integrated Emart will establish the foundation this year by reorganizing the organization for integrated purchasing. Based on this, it plans to begin full-scale synergy creation from 2025.

With the launch of the integrated Emart, Emart expects to expand purchasing scale and enhance cost competitiveness. Partner companies will be able to increase product distribution channels and supply volume, and have greater capacity to develop new products reflecting consumer trends. This will also have the effect of strengthening product competitiveness in terms of price and quality.

Earlier, since February, Emart and Emart Everyday have jointly sold some planned products under the 'Price Reversal' campaign, which offers discounts on essential items such as food and daily necessities. This includes Emart’s private brand (PB) product 'Imatssal.' It is expected that the integrated Emart will expand suppliers’ distribution channels while increasing customer choices. Integrated marketing for customers who use both large discount stores and corporate supermarkets (SSM) is also expected to increase.

Emart also anticipates operational efficiency through integrated logistics. Utilizing the logistics centers owned by both companies together will enable rapid product supply. Logistics centers located in similar regions can be consolidated to improve efficiency.

Han Chaeyang, CEO of Emart and Emart Everyday, said, "The integration of the two companies is a strategy to secure sustainable profitability and growth amid a rapidly changing market environment. It will benefit partner companies and ultimately realize an 'integration for all' that maximizes customer benefits."