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    Lotte Will Withdraw From The Chinese Market? Difficult To Find A Disc Player

    2017/9/18 9:16:00 48

    Lotte MartSupermarketChina Market

    There is no room for fire.

    Always denied that the Lotte Group, which had withdrawn from China, finally decided to sell China.

    Lotte Mart

    Lotte's investment in China's 8 trillion won business may also be in a more difficult position.

    However, the 112 stores that are preparing to withdraw from the Chinese market are not selling smoothly. Lotte and the securities industry reckon Lotte Mart's book value is up to 830 billion won, but the offer made by the acquirer is much lower than this figure.

    Who will pick up the plate?

    Lotte Matt and the investment banking community reported that Lotte Mart recently discussed the sale of stores with the Beijing Hualian Group.

    After that, Lotte Mart negotiated with Thailand Zhengda Group.

    However, the acquisition price of these enterprises is over 30% lower than the book value, and there is no progress in the negotiations.

    When reporters visited Rui Cheng store in Lotte matte on the afternoon of September 17th, most of the goods had already been removed. The rest of the products were on sale, though it was Sunday, but there were few customers.

    The shelves of fresh food and beverage areas have basically been withdrawn, and the products of household electrical appliances are not complete.

    In the supermarket entrance channel, some goods are being sold at a low price, and the cartons are covered with packing lists printed with information pferred out of stores and into stores.

    Lotte Group has been repeatedly denied news of the sale of Lotte Mart in China, but the Lotte Group has denied it and made urgent clarification and said it would never give up its business in China.

    In September 11th, Lotte had promptly clarified that Lotte Group had not discussed any matter of withdrawing from the Chinese market.

    Not only does Lotte Mart's supermarket business, Lotte Department store, Lotte World, Lotte fruit, Lotte theatre and other more than 20 related subsidiaries have entered the Chinese market, but considering the market size and growth potential of Chinese enterprises, Lotte will never give up its business in China.

    Lotte still has no support.

    Less than a week later, the situation reversed sharply. Lotte Mart's business in China was confirmed to be on sale in September 14th.

    Lotte recently decided to sell Lotte Mart, a supermarket in China, and chose Goldman Sachs as its selling director.

    At present, the scope of sale has not yet been determined, but it is not possible to exclude the possibility of selling all 112 supermarkets in China.

    In March of this year, Lotte Mart also had 115 stores in China. After that, Lotte Mart ceased in China, and 87 of the 112 stores closed.

    According to reckoning, the loss of Lotte Mart reached 500 billion won (about 2 billion 900 million yuan) in 6 months. If the current situation continues to the end of the year, the loss will reach 1 trillion won.

    People in the investment banking circles say that Lotte is anxious to sell and is therefore at a disadvantage in the negotiations, and the acquirer is also aware of the current situation of Lotte, which sharply reduces the price.

    The person also said that China's Lotte Mart sold 1/5 in the first half of this year, and it was hard to sell at a satisfactory price.

    Freezing point in China and South Korea

    Before the "Sade", Lotte has been expanding in China since 2008.

    However, in February this year, Lotte Group signed a land exchange agreement with the South Korean government, and agreed to give up the golf course land under the group so that the United States could deploy the "Saad" anti missile system.

    This prompted China's strong dissatisfaction, and Lotte's business in China was also hit hard.

    In the early hours of September 7th, the South Korean side sent the remaining 4 missile launchers and related materials to the Saad base in South Korea.

    On the same day, Chinese Foreign Ministry spokesman Geng Geng said at a regular press conference that China had solemnly made representations to the ROK on the "temporary" deployment of "Sade" by the US and South Korea.

    Under the circumstances of the deployment of the "Saad" remaining launch vehicle and the further cooling of Sino Korean relations, Lotte decided to formally promote the pfer of supermarket business.

    After the outbreak of "Saad", Lotte Matt continued to fall off cliff, which was maintained by blood pfusion at headquarters in Korea.

    In March this year, Lotte headquarters provided Lotto mart with a working capital of 360 billion won, but it almost burned down by the end of 8. In August 31st, Lotte Matt announced that it had decided to invest $300 million in order to get rid of the current business predicament in China, and had second rounds of urgent "blood pfusion" for Lotte Matt in China.

    Lotte Group had secretly considered the possibility of selling Lotte Mart in China, and who would accept the offer.

    Li Jiacheng, a researcher at the center for economic and political studies of the pition countries in Liaoning University, said: "after the comprehensive deployment of sadad, the relationship between China and ROK is likely to be in a downward freeze for a long time.

    The "Saad" entry into Korea will not lead to the development of China ROK relations in the past 25 years, but all of a sudden, all will return to zero, but it will lead to a serious retrogression in China ROK relations.

    Some scholars even said that "Sade" will cause the Sino ROK economic and trade relations to return to ten years ago.

    Investment shake

    As one of the five big groups in Korea, Lotte began to enter China in 1994. Lotte matte is a general of Lotte Group.

    In December 2007, Lotte Mart acquired 8 stores in Beijing, China, and officially entered the Chinese market.

    Since then, Lotte Mart has acquired a number of stores in China, and is everywhere. Beijing, Shanghai, Shandong, Shenyang, Chongqing and other places can see its figure. China has become Lotte Mart's most important overseas market.

    Currently, including

    retail

    (Le Tian department store and Le Tian mart), food (Le Tian fruit and Le Tian star), tourism services (Le Tian Hotel, Le Tian duty free shop and Le Tian Studios) and so on, there are 22 subsidiaries in China, and invested 8 trillion won in China.

    Lotte city in Shenyang, especially the Lotte city project, cost a total of 3 trillion won, including the construction of Lotte World playgrounds, shopping centers, hotels, apartments, etc., but in November last year, the project was stopped on the grounds of fire hazards.

    Chengdu's Lotte plaza construction project, which invested 1 trillion won and plans to complete in 2019, is also facing difficulties.

    As Lotte Matt has decided to pfer, Lotte's business in China will be in a more difficult position.

    South Korea's financial circles said that before Lotte failed to decide to sell Lotte Mart, it was also worried about the negative impact on other projects invested heavily, but had decided to divest. With the "Saad" storm continuing to ferment, Lotte's investment in China's 8 trillion won could be shaken.

    However, Lotte still denied this.

    The leader of Lotte Group said, "Lotte Mart's withdrawal does not mean the withdrawal of all business.

    Now that there are still investments in China, it is not easy to quit altogether. "

    More interesting reports, please pay attention.

    World clothing shoes and hats net

    。

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