NS Shopping of Harim Group was named the preferred bidder in the open tender for Homeplus Co. Express. Observers say the group's recent push to maximize synergies across food, logistics, and retail is likely to gain speed.
Homeplus Co. said on the 21st, "As a result of the open bidding for Homeplus Express, we decided to designate Harim Group's NS Shopping as the preferred negotiating partner."
Homeplus Co. added, "We plan to swiftly wrap up negotiations on the details and sign the main contract."
With the preferred bidder selected on the deadline for the main bid in the sale of Homeplus Co. Express, the corporate rehabilitation of Homeplus Co. under MBK Partners has cleared a major hurdle. The sale of Homeplus Express is one of the key parts of Homeplus Co.'s rehabilitation plan.
The market had estimated the value of Homeplus Co. Express at about 300 billion won, but the actual sale price is widely believed to be likely to fall short of that.
The industry expects Harim to use Homeplus Co. Express's 289 stores, concentrated in the Seoul metropolitan area, as dedicated outlets for fresh food and ready-to-eat meals.
Homeplus Co. Express is also expected to generate synergy with various new businesses Harim is pursuing. Harim aims to grow beyond broilers into a comprehensive food company covering processed foods across the board, including premium home meal replacements (HMR).
The industry also expects synergies between Homeplus Co. Express and the offline channels of Harim affiliate NS Home Shopping. About 76% of Homeplus Co. Express stores can provide quick-commerce delivery. It is expected to compete in fresh food sales with e-commerce heavyweights such as Kurly and Coupang.