[THE INVESTOR] Lotte Duty Free is considering acquiring Australian duty-free operator JR Duty Free, according to industry sources on June 19.

“We chose Samjung KPMG as the deal manger and are currently considering acquiring JR Duty Free. But we cannot confirm any details,” a Lotte Duty Free spokesperson told The Investor. 

The Korean firm first considered buying JR Duty Free two years ago, but at the time it failed as it refused to accept terms of the deal.

Lotte Duty Free added that it is currently considering acquiring duty-free operators mainly because it wants to increase its brand power by expanding. It is currently the second largest duty-free operator globally, posting around 4.7 billion euros (US$5.46 million) in sales, following Swiss-based duty-free operator Dufry, which posted 7.2 billion in sales last year. If the Korean firm successfully acquires JR Duty Free, its sales are expected to reach around 5.4 billion euros.

JR Duty Free currently operates 14 outlets in four countries, including Australia, New Zealand, Israel and Tahiti. According to sources, it posted sales of 670 million euros in 2016.

By Song Seung-hyun (ssh@heraldcorp.com)