Unionized workers at Homeplus, owned by the U.K.’s Tesco, Thursday urged the company to ensure a transparent takeover for the nation’s second-largest supermarket chain and guarantee that the sell-off will not result in job losses.
“Tesco is pushing a secretive acquisition deal with foreign private equity firms, which sparks concerns on possible massive restructuring and job losses,” a union member said during a press conference held at the headquarters of Homeplus in Seoul.
The move comes after reports that the retail giant Tesco shortlisted five bidders — Carlyle Group, Affinity Equity Partners, Goldman Sachs Principal Investment Area and local buyout fund MBK Partners — for the Homeplus takeover deal that is valued at around $6 billion to $7 billion.
Homeplus, entirely owned by Tesco, has kept mum on the deal, saying the company is not in a position to comment despite a flurry of speculation and media reports since early June.
The labor union claimed that Homeplus’ lack of communication on the mergers and acquisitions deal has brought distress to 25,000 workers at the chain store.
According to investment bank officials, sales broker HSBC sent investment prospectuses to the buyout firms under a confidential agreement in June.
Homeplus refuted claims from the union that branded Tesco’s sell-off action as a “secretive dine and dash.”
“If the unionized workers understand the process of M&A, they should know that the early stage of the deal and related information need to remain confidential,” a Homeplus spokesperson said.
“When the deal comes to the next round to pick preferred bidders, Tesco will officially announce them,” he said.
Homeplus was established in 1999 by British retail giant Tesco in coordination with Samsung C&T. Homeplus currently operates 140 hypermarkets and 380 convenience stores.
By Park Han-na (hnpark@heraldcorp.com)
