Lotte Shopping to merge with Lotte Midopa

Lotte Shopping Co., Korea's largest retailer, said Thursday that it will absorb its affiliate Lotte Midopa Co. to increase its market power.

The merger will be carried out by a share swap between Lotte Shopping and Lotte Midopa at a ratio of 1:0.0375684 and the merged entity will be launched on Jan. 1, 2013, Lotte Shopping said in a regulatory filing.

Lotte Shopping predicted that the merger will tighten its grip on the local retail market and increase its cash flows.

Lotte Shopping acquired local department store Lotte Midopa, formerly Midopa, in 2002. (Yonhap)