Lotte Shopping, South Korea's biggest department store owner, is in talks to buy a controlling stake in Chinese supermarket operator Times Ltd., rivaling a bid from Wumart Stores Inc., Bloomberg reported Monday, quoting two people familiar with the matter.
Seoul-based Lotte Shopping is in discussions to pay cash for a 72.3 percent stake in Times from Chairman Kenneth Fang, the people said, asking not to be identified because the talks are private, according to Bloomberg.
The acquisition, if realized, will be the biggest ever in China by a Korean company. Lotte, which operates a department store in Beijing, would add 65 outlets in the world's fastest- growing major economy with a purchase of Times. Wumart said Sept. 24 it has held talks with Times.
Times operates 53 hypermarkets and 12 supermarkets in eastern China with a total gross floor area of about 892,628 square meters, according to the company's Web site. The company said in September it plans to open 17 more hypermarkets China.
"Lotte has a small presence in China and it needs the scalability to bolster sales from the current level of operation," Han Kook-hee, an analyst at Mirae Asset Securities, was quoted as saying.
Bloomber said Lee Sun-dae, a spokesman for Lotte, confirmed in a phone interview the company is considering buying Times though no decision has been made.
Lotte is pushing into developing markets by expanding in China, Vietnam, Indonesia and Russia, seeking to tap rising affluence among consumers in those countries.