Blog: Orion mulls foray into retail with Tesco South Korea bid
Hannah Abdulla | 15 June 2015
South Korean snack maker Orion is reportedly planning to make its first foray into retail with the acquisition of Tesco's South Korean unit, Homeplus.
The company told Reuters it is considering a bid for Homeplus but has made no decisions on whether to pursue a formal offer. The deal - if it were to go ahead - would mark Orion's first such venture in retail.
Orion has a presence in the confectionery and snacks industry, where it manufactures biscuits, caramel, gum and bakery items. It also has a presence in the entertainment sector and owns TV channels and it owns the Market O restaurant chain. It also has an involvement in sports in South Korea.
Tesco's operations in Korea are the largest outside of the UK with over 400 stores, 500 franchise stores and over six million customers served a week. It pulled in revenues of US$6.3bn in 2014. The UK retailer is in the midst of a recovery plan following an accounting scandal it was caught up in last year. The company is working to turn around its domestic operations as it - along with the other major retailers - fights to claw back market share lost to discount retailers in the UK. A sale of the unit would be the easiest way to cut debt and strengthen the balance sheet.
Orion is facing competition from a number of private equity firms that have also submitted bids. A PE firm acquisition would likely see money made from the valuable property assets through sale-and-leaseback agreements.
Reuters has listed KKR&Co and Carlyle Group among bidders, with London's CVC Capital Partners, Hong-Kong's Affinity Equity Partners and Asia's MBK Partners also reportedly invited to bid.
The plethora of food manufacturing associations in the UK has been argued by some to be an impediment to the industry coming to a coherent position on the aftermath of Brexit and on what the sector sh...
An update on Amazon's plans for the grocery sector. The usually reticent retailer has this week poured cold water on claims it has plans for 2,000 physical grocery stores....
Ask any FMCG executive to list the trends shaking up the sector and digital and e-commerce will be pretty high on the list. Drill down into that and Amazon will be one of the subjects in the digital s...
Since Theresa May took over as UK Prime Minister in the wake of the country's referendum vote to quit the European Union, she and her ministers have been at pains not to divulge their negotiating posi...
- Wessanen's move for Spain's Biogran - analysis
- The key questions for digital strategists in 2017
- Unilever 2016 investor day - the top takeaways
- Burger King, Jollibee: foodservice focus, Nov 2016
- Whole Foods, Aldi, M&S - retail round-up, Nov 2016
- Verlinvest, China Resources invest in Oatly
- Hain Celestial appoints Nestle executive as US COO
- General Mills jobs to go in business revamp
- Chobani COO Burns to leave yogurt firm
- Freedom Foods Group nears M&A in Oz, North America
- How Brands Are Making Our Food Healthier
- Confectionery North America (NAFTA) Industry Guide_2016
- Processed Snacks (Savory Snacks) Market in the United States - Outlook to 2020: Market Size, Growth and Forecast Analytics
- Chocolate (Confectionery) Market in Belgium - Outlook to 2020: Market Size, Growth and Forecast Analytics
- Global Dried Processed Food Market 2016-2020