Canada Pensions Buy South Korean Supermarket Chain in $6 Billion Deal


Two Canadian pension funds are about to own sizeable stakes in South Korea’s second-largest retailer.

A consortium of investors, including Canada’s Public Sector Pension Investment Board and the Canadian Pension Plan Investment Board, on Monday purchased the South Korean grocery chain Homeplus.

More from the Canadian Press:

Two Canadian pension plans are part of a consortium that purchased South Korean supermarket chain Homeplus from British retailer Tesco for around US$6 billion on Monday.

The Canadian Pension Plan Investment Board said it spent US$534 million for a 21.5 per cent stake in the company.

The Public Sector Pension Investment Board, which manages investments for the federal public service and the Canadian Forces among others, was also a part of the deal but did not disclose its contribution.

Homeplus is South Korea’s second-largest retailer, with more than 1,000 outlets across the country. It was originally founded as a joint venture between Samsung and Tesco in 1999.

South Korean private equity firm MBK Partners led the deal and said the consortium will invest US$831 million in the business over the next two years.

The deal is expected to be closed by the end of 2015.


Photo by  Gioia De Antoniis via Flickr CC License

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