AliExpress "Not Participating in Discussions to Acquire Homeplus"

Chinese shopping platform AliExpress has announced that it will not participate in discussions to acquire Homeplus.

AliExpress Korea stated in an official statement on the 18th, "We would like to clarify our official position regarding recent reports that AliExpress Korea is engaged in merger and acquisition (M&A) negotiations with a domestic distribution company," adding, "We want to make it clear that we are not participating in the said M&A discussions."

It continued, "AliExpress Korea will continue to prioritize strengthening consumer rights and will do its best to coexist with domestic sellers and the Korean market."

Although the statement was issued by AliExpress Korea, it was distributed after confirmation from the leadership of Alibaba International Digital Commerce Group (AIDC), part of the Alibaba Group to which AliExpress belongs.

Recently, rumors circulated in the domestic investment banking (IB) industry that AliExpress might acquire Homeplus or Homeplus Express, leading some media outlets to report that MBK Partners, the private equity fund (PEF) and major shareholder of Homeplus, was in contact with AliExpress, suggesting the possibility of a sale.

The distribution industry views this situation as stemming from the fact that next year marks 10 years since MBK Partners acquired Homeplus for 7.2 trillion won, and MBK is reportedly seeking a buyer for Homeplus to recover its investment (exit).

Meanwhile, on the same day, the Korean Confederation of Trade Unions’ National Service Industry Labor Union Federation, along with the Homeplus branch of the Mart Industry Labor Union and the Homeplus General Labor Union, held a press conference in front of Homeplus Seoul Gangseo Branch (headquarters), expressing their opposition to "the secretive and split sale by speculative capital MBK."

Homeplus workers condemned the split sale of Homeplus Express, stating, "It is an act that abandons the status of Korea’s second-largest large supermarket company, weakens corporate competitiveness, and is merely a method to maximize MBK’s profits without considering the future of Homeplus and the livelihood of its 20,000 employees."

The workers demanded, "Stop the secretive sale and closely communicate and consult with the labor unions throughout the sale process."