Economy

Lotte Shopping picks Goldman to manage sales of supermarkets in China

Lotte Shopping picks Goldman to manage sales of supermarkets in Chinaā€¯

Lotte Group announced on September 14 that it is going to sell its Lotte Mart stores in China and selected Goldman Sachs as the lead manager to that end.

Until recently Lotte had planned to sell off only the worst-hit stores in China, but now it seems they will all go. The decision follows the closure of about 80 percent of Lotte Mart stores in China for more than six months.

Lotte Shopping will not rule out selling all supermarkets in China as the conglomerate contemplates a way forward amid a diplomatic row that has crippled its business in the country, a senior company official told The Nikkei. According to experts, this is because Lotte Group provided its golf course in South Korea for the deployment of the missile defense system.

China has pressured South Korean businesses via boycotts and bans since Seoul decided a year ago to deploy a USA -made missile defense system as a deterrent to nuclear-armed North Korea. "Nothing has been fixed yet, but Lotte Mart may sell off everything it has in China or a significant chunk of it". 87 out of them have been shut down since China's economic retaliation following THAAD deployment in South Korea. With nearly zero sales revenue, Lotte Mart estimates total losses will amount to nearly one billion dollars by the end of this year should the trend continue.

Lotte Mart injected 360 billion won (US$318 million) of emergency funds into its Chinese retail business in March and recently chose to pour in an additional 340 billion won to sustain operations there. E-Mart logged operating losses of over 150 billion won from 2013 to 2016. Roughly 90% of Lotte Marts have closed due to reasons such as alleged fire safety violations.



Like this

Latest


15 September 2017
VW e-Golf with upgraded battery pack starts at $31315
The e-Golf has always been competing with the Nissan Leaf, which is now available for an MSRP of $30,680 with 107 miles of range. Most of the added features for both upgrade models come from connected vehicle technologies.

15 September 2017
Moonves says CBS better positioned for OTT future than Disney, ESPN
We did it with news. "We think there's a place in the marketplace for straight, factual, clips, highlights, scores", Moonves said. I want to see whether the Dodgers or the Yankees won last night and often it takes 20 minutes to get that.

15 September 2017
Boise State Football moves past OT loss to WSU
Prior to that, Boise State had won 110 consecutive games when leading by at least 21 points in the second half. The Boise State Broncos are ranked 85 on offense, averaging 381.0 yards per game.

15 September 2017
Hindi speakers should give space to other languages: President Ram Nath Kovind
He was received at the Chowdhary Charan Singh airport by Governor Ram Naik, Chief Minister Yogi Adityanath and other ministers. This is the President's first visit to the state after assuming the top most constitutional post of the country.

15 September 2017
Cavs Rumors: Cleveland Cavaliers Have 'No Plans' to Trade Kevin Love
Because of that expectation, it appears that the Cavs plan to keep the four-time NBA All-Star on their roster. Love should savor this moment. "I expect to be here for a long time".

15 September 2017
Hawk rescued by cab driver before Hurricane Harvey released into wild
The Houston-based animal care facility then took Harvey to the Blackland Prairie Raptor Center in Lucas for rehabilitation. According to the cab driver recording the video, she swooped into the cab and perched herself in the front seat.

15 September 2017
Somewhat Favorable News Coverage Somewhat Unlikely to Impact Agenus (AGEN) Share Price
Agenus Inc. (AGEN ) is expected to post revenue of $5.31 Million in the current quarter, according to consensus of 3 analysts. ValuEngine raised shares of Agenus from a "strong sell" rating to a "sell" rating in a research report on Monday, July 24th.

15 September 2017
Oak Associates LTD Lifted Pepsico INC (PEP) Stake by $11.84 Million
With 24,600 avg volume, 2 days are for Bluelinx Holdings Incorporated (NYSE:BXC)'s short sellers to cover BXC's short positions. It worsened, as 67 investors sold RAD shares while 114 reduced holdings. 82 funds opened positions while 119 raised stakes.

15 September 2017
Amgen INC (AMGN) Holder Lsv Asset Management Increased Its Holding
Nelson Roberts Investment Advisors LLC bought a new stake in shares of Amgen in the 1st quarter worth approximately $121,000. It worsened, as 44 investors sold AR shares while 82 reduced holdings. 94 funds opened positions while 248 raised stakes.

15 September 2017
Alaska Air Group, Inc. (NYSE:ALK) Experiences Heavy Trading Volume
As of the end of the quarter Cypress Capital Management LLC (wy) had acquired a total of 525 shares growing its stake by 18.3%. On August 17 Morgan Stanley maintained a stock rating of "Overweight" and moved down the price target to $96.00 from $102.00.



Recommended