Lotte Group considers buying GS Retail units

SEOUL, Jan. 14 (Yonhap) -- Lotte Group, a South Korean conglomerate, is
considering buying the discount and department store units of GS Retail Co.,
industry sources said Thursday.
The group, which operates Lotte Shopping Co., the country's largest department
store chain, is seeking to boost its discount store sector in order to compete
with larger local rivals E-Mart, operated by Shinsegae Co., and Home Plus,
operated by Samsung Tesco Co.
GS Retail, the retail arm of GS Group, has been seeking to sell its discount
store unit, GS Mart, and department store business GS Square, as part of efforts
to realign business operations.
E-Mart and Home Plus have expressed interest in buying the two units.
Industry sources estimate the deal may fetch 1 trillion won (US$891 million).
GS Retail plans to select a preferred bidder this month and complete the sale by
February.
sam@yna.co.kr
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