E-Mart and E-Mart Every merge to improve profitability and streamline operations (Korea)

The major retailer E-Mart and the corporate supermarket (SSM) E-Mart Everyday each held a board of directors meeting and announced that they had resolved to merge. The merger agreement was signed on April 3rd.
The planned merger date is June 30th. Registration will be completed on July 1st, and the merged company will be launched. E-Mart is the parent company that holds 99.3% of E-Mart Everyday's shares.
The merger will involve the absorption of Everyday, but in accordance with relevant laws, the process will be carried out as a small-scale merger in which the general shareholders' meeting will be changed to a board of directors meeting.
Regarding the merger, E-Mart said, "Since our CEO Han Chae-yang assumed the dual role of CEO of both companies in September 2023, we have been working on the merger.
"The purpose of the merger is to expand the measures to create synergy effects," he explained. After the merger, E-Mart will be able to reduce costs by expanding its purchasing scale, while its partner companies will be able to expand their product sales channels and supply volumes.
This will also create capacity for the company to develop and offer new products. It is also expected to improve the efficiency of logistics. By utilizing the logistics centers owned by both companies, it will be possible to supply products more quickly.
The company explains that it is also possible to improve efficiency by consolidating and streamlining logistics centers in the same area.