Hyundai Department Store eyeing SK Networks’ fashion business

Korean´s department store chain Hyundai Department Store is reportedly planning to acquire fashion retailer SK Networks.

As reported by the ‘Korea Herald’, a spokesperson for Hyundai Department Store confirmed Tuesday that the retailer is undergoing discussions for acquiring SK Networks.

“Hyundai Department appears to be looking to build up its exterior, particularly in terms of fashion,” said Kim Geun-jong, a researcher at Hyundai Securities quoted by the Seoul-based paper. The analyst added that “Hyundai Department Store obviously is looking at M&As to shore up its competence,” said Kim.

Industry sources say the move is a part of chairman Chung Ji-sun 's vision for the future. He advanced that the company will seek annual sales of 20 trillion won via M&As, and operating profit of 2 trillion won by 2020.

Noteworthy, earlier this year both Hyundai Department Store and SK Networks competed against each other over acquiring home appliance manufacturer Tongyang Magic. SK Networks.

If the merger goes ahead, the department store’s joint fashion business would record annual sales of more than 1 trillion won (887.30 million dollars).

Current fashion business at the company, Hansum, posted annual sales of 615.4 billion won in 2015, while SK Networks recorded sales of 565.2 billion won in the same period.

Hyundai Department Store acquired Hansum in 2012.