A market rumor said the acquisition would cost about 1 trillion won (US$900 million). Matahari plans to divest Hypermart, Indonesia's second biggest hypermart chain after PT Carrefour Indonesia, as it tries to focus on its core healthcare and property assets.
Matahari's Hypermart owns and manages 38 stores in 21 cities across Indonesia, ranking it behind market leader PT Carrefour Indonesia which operates 65 stores.
Lotte, the fourth-biggest hypermart player in Indonesia, is South Korea's fifth largest conglomerate in terms of assets and has in recent years actively snapped up M&A targets across Asia in the face of an increasingly saturated retail market at home.
Last December, Lotte bought Chinese supermarket operator Times and operates 79 supermarkets in the country. In Indonesia, Lotte purchased Dutch wholesaler Makro in October 2008.
Bank of America's Merrill Lynch is advising PT Matahari Putra Prima, which is owned by Indonesia's Riady family. Lotte is being advised by HSBC and UBS is advising Carlyle.
Matahari's Hypermart owns and manages 38 stores in 21 cities across Indonesia, ranking it behind market leader PT Carrefour Indonesia which operates 65 stores.
Lotte, the fourth-biggest hypermart player in Indonesia, is South Korea's fifth largest conglomerate in terms of assets and has in recent years actively snapped up M&A targets across Asia in the face of an increasingly saturated retail market at home.
Last December, Lotte bought Chinese supermarket operator Times and operates 79 supermarkets in the country. In Indonesia, Lotte purchased Dutch wholesaler Makro in October 2008.
Bank of America's Merrill Lynch is advising PT Matahari Putra Prima, which is owned by Indonesia's Riady family. Lotte is being advised by HSBC and UBS is advising Carlyle.
Disclosure: No position at the stocks mentioned above.
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