South Korea’s GS Retail to fully own Watsons Korea
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GS Retail Co., a retail unit of South Korean conglomerate GS Group, will take over additional 50 percent stake in the Korean unit of drug store franchise label Watsons from Hong Kong-based A.S. Watson Group to make it its fully-owned entity, the company said Thursday.
The Korean retailer in December 2004 launched Watsons Korea on a 50:50 partnership investment with A.S Watsons. It will fully own it by taking over the remaining 50 percent stake at 11.9 billion won ($10.4 million) from Watsons Holdings, Korean unit of the Hong Kong retail company.
The company decided to make Watsons Korea as a wholly owned subsidiary to create a synergy effect with other retail businesses, said an unnamed GS Retail official.
GS Retail has been operating the drug store chain in Korea under the brand name GS Watsons since it opened the first branch in Seoul in March 2005. It opened 54 GS Watsons stores across the country by 2011 and the number of stores jumped to 128 by end of last year.
Shares of GS Retail closed Friday at 52,000 won, up 4.21 percent from the previous session in Seoul trading.
Questions & Answers
Q.What is the primary reason GS Retail is taking full ownership of Watsons Korea?
What is the primary reason GS Retail is taking full ownership of Watsons Korea?
GS Retail decided to make Watsons Korea a wholly owned subsidiary to create a synergy effect with its other retail businesses. This move aims to integrate the drug store chain more closely with its existing operations.
Q.How much is GS Retail paying for the remaining stake in Watsons Korea?
How much is GS Retail paying for the remaining stake in Watsons Korea?
GS Retail is acquiring the remaining 50 percent stake in Watsons Korea for 11.9 billion won, which is equivalent to $10.4 million. This transaction will make Watsons Korea a fully owned entity.
Q.When did GS Retail and A.S. Watson Group initially form their partnership for Watsons Korea?
When did GS Retail and A.S. Watson Group initially form their partnership for Watsons Korea?
GS Retail and A.S. Watson Group launched Watsons Korea in December 2004, establishing it as a 50:50 partnership investment. They have operated the drug store chain together since then.
Q.What is the current number of GS Watsons stores operating across South Korea?
What is the current number of GS Watsons stores operating across South Korea?
The number of GS Watsons stores operating across the country increased to 128 by the end of last year. This shows significant growth from the 54 stores opened by 2011.
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