South Korea's top retailer by market share, Lotte Shopping Co, said yesterday that it was considering purchasing a 72.3-percent stake in the Chinese hypermarket and supermarket operator Times Ltd, but no decision had yet been made.

Chung Ji-song, spokesman for Lotte Department Store, a key unit of Lotte Shopping, told Reuters that Times was one of many merger and acquisition offers it had been asked to consider.

Seoul-based Lotte Shopping indicated it may pay cash for a controlling stake in Times from its chairman, Kenneth Fang. Any deal would scupper Wumart Stores Inc's $600-million bid for the Chinese retailer.

The stake on offer is valued at roughly $363 million on Friday's closing market price.

Trading of the Hong Kong-listed Times Ltd stocks was halted pending the release of an announcement relating to a strategic review it is conducting.

Times Ltd, with a market capitalization of around HK$3.7 billion, owns 53 hypermarkets and 12 supermarkets with a gross floor area of 850,000 sq m mainly located in second- and third-tier cities in Jiangsu province, along with Shanghai, Zhejiang, Shandong and Anhui. The company said in September it planned to open 17 more hypermarkets in the country.

Times' net profit rose 62 percent to 137 million yuan in 2008 with 4 billion yuan in sales.

Lotte, which operates department stores and discount outlets in South Korea and China, is the country's second-biggest retailer after Shinsegae Co Ltd by market value.

It operates a department store in Beijing with Intime Department Store (Group) Co and has fewer than 10 hypermarkets in China. The company acquired 49 percent of CTA Makro, which operates supermarkets in Beijing and Tianjin, in 2007, and bought the remainder the following year.

Analysts said that a purchase of Times would add 65 outlets in China for Lotte, which is key to Lotte's development in the Chinese retail industry.

Alex Liu, retail analyst with market research firm Euromonitor International, said: "Lotte is a relatively late mover in the Chinese retail industry, with fewer outlets compared with its rivals such as Carrefour and Wal-Mart. Therefore, the purchase would be a wise way for the retailer to quickly expand its presence in China and promote its business in the country."

Chinese retailer Wumart is reported to be the most likely bidder for Times since Times invited a restricted number of parties to make proposals in connection with its strategic review, which may lead to a general offer for the company.

Wumart said all speculation following its statements previously was wrong. Company statement said it held preliminary talks with Times with no progress so far.

Wu Jianzhong, chairman of Wumart, previously told China Daily that the company was actively seeking possible merger and acquisition opportunities.

Wumart, the fourth-largest supermarket chain by sales, said on Aug 12 that it would cumulatively raise about HK$1.65 billion from strategic investors, including a TPG-managed fund, and use the money to open new stores and make acquisitions.

Industry insiders said that when both domestic and international retailers seek to aggressively expand in China, domestic retailers have some advantages compared with their international rivals because they are more familiar with Chinese markets and consumers' needs and also have their own networks.