skip to main content
  • *
  • *
  • *
Find Insight DIY on
* * *

International DIY News

Tesco nearing sale of Korean business

Tesco Homeplus store Korea

Supermarket chain Tesco is in the process of selling its Korean business to Asian-focused private equity firm MBK Partners in a £4billion-plus deal.

The sale is the first major disposal by Tesco as it tries to combat falling sales.

Tesco has been struggling to cope with market share losses to discount chains including Aldi and Lidl, changing shopping habits and an accounting scandal last year. Its credit rating was cut to ‘junk’ status by Moody’s and S&P in January.

Under chief executive Dave Lewis, who joined last year from Unilever, Tesco (up 2.9p to 187.75p) has been reviewing its sprawling business empire to sell unwanted parts to concentrate on improving its core UK business.

The sale of the Korean business, called Homeplus, will help it to cut debt.

It is also looking to sell data analysis business Dunnhumby.

Seoul-based MBK, one of the largest Asia-based private equity firms, beat interest from investment firms Affinity Equity Partners, KKR and Carlyle Group.

MBK is said to be in a joint venture with Singapore state investor Temasek and is seeking funds from South Korea’s National Pension Service.

Source : Laura Chesters -

04 September 2015

Related News

view more International DIY News

Insight provides a host of information I need on many of our company’s largest customers. I use this information regularly with my team, both at a local level as well as with our other international operations. It’s extremely useful when sharing market intelligence information with our corporate office.

Paul Boyce - European CEO, QEP Ltd.

Don't miss out on all the latest, breaking news from the DIY industry