Alibaba merges with E-Mart in $4bn deal to compete in South Korean market

From Investing.com: 2024-12-26 04:34:28

Alibaba merges South Korean operations with E-Mart’s e-commerce platform, forming a joint venture with a $4 billion valuation. E-Mart shares rise 5.5%, while Alibaba’s Hong Kong-listed shares climb 2.6%. The partnership aims to compete against Naver Corp and Coupang LLC in the online retail market.

Alibaba expands internationally as domestic e-commerce growth slows. Weak performance in September quarter offset by gains in cloud division and international ventures. Company faces competition from emerging players like PDD Holdings Inc and ByteDance. CEO Eddie Wu focuses on consolidating operations and investing in growth areas.

Alibaba sells its Intime department store unit to Youngor Fashion Co. for $1 billion to streamline business. Expects a $1.3 billion loss on original investment in Intime. Move part of effort to shed non-core assets. Company repositioning to focus on high-growth potential areas amidst e-commerce challenges.



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