Online marketplace giant eBay is set to sell a majority stake in its South Korean branch to retailer E-Mart for $3bn.
The deal forms part of a string of asset sales, with the UK’s competition watchdog clearing eBay’s $9.2bn sale of its classified ads business to Norwegian rival Adevinta earlier this month.
South Korean E-Mart, part of retail giant Shinsegae Group, has agreed to acquire 80 per cent of the business that rakes in over a 10th of Ebay’s global revenue.
The deal is expected to close later this year or early next year, as it is pending approval from the Bank of Korea.
The Shinsegae Group had previously entered talks with banks for a multi-tenor loan of around three trillion won, so it could bag Ebay’s South Korean division, Bloomberg reported, citing people familiar matter.
E-Mart has now tabled plans to inject more than one trillion won into fulfilment centres over the next four years.
The centres will be used to deliver goods in partnership with eBay in areas from grocery to general merchandise.
“This deal brings together two strong e-commerce and retail companies that can unlock tremendous potential in Korea and provide more choice for customers,” Ebay’s CEO Jamie Iannone said in the joint statement.