Lotte Shopping and Shinsegae Group are angling to buy eBay’s South Korean business, which accounts for 12.8 percent of eCommerce sales in the country. The two companies have entered separate binding bids to acquire the business.
The deal could fetch eBay as much as $4.5 billion, according to market analysts and give the company with the winning bid a significant leg up in the competition. eBay is the fourth-largest player in the eCommerce space in the country.
The two players are in a tense battle to cut themselves a bigger share of the market, which is currently dominated by Coupang — the fastest growing eCommerce player in the country, Reuters reported.
eCommerce is a booming sector in the South Korean market. eCommerce sales totaled $144 billion last year, accounting for more than 27 percent of retail sales in the country, up from 21 percent in 2019.
This growth is driving sales for players across the board. Last month, Shinsegae saw its consolidated Q1 sales soar to $1.9 billion, while its net profit increased to $78.8 million, with luxury sales soaring by 58 percent.