Emart merges with Emart Everyday supermarket

[EMART]

Emart, a leading hypermarket chain, has merged with its subsidiary, Emart Everyday, in an effort to cut costs amid mounting losses.

The boards of Emart and Emart Everyday approved the merger on Tuesday, according to an electronic disclosure filed by the retailer.

The move aims to streamline the procurement of goods, logistics and operations, Emart said in a statement.

The deal marks the first merger led by CEO Han Chae-yang, who oversees Emart, Emart Everyday and the Emart24 convenience store chain.

The merger agreement is scheduled to be finalized by April 30 along with subsequent steps, including permissions from shareholders and bondholders. The date of the merger is June 30, and will culminate in the establishment of an integrated Emart corporation after the completion of registration on July 1.

Emart, currently the largest shareholder of Emart Everyday with a 99.3 percent stake, will absorb Emart Everyday as part of the merger. Emart plans to pay out minority shareholders of Emart Everyday without issuing additional shares.

"The merger represents a strategic move to secure sustainable profitability and growth amidst an ever-changing market landscape," Han stated. "We will realize an 'integration for all' that not only benefits our cooperating partners but ultimately maximizes customer benefits."

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]