A PYMNTS Company

Korea Extends Delivery Hero-Woowa Brothers’ Deal Review

By  |  May 3, 2020

The result of the Korea Fair Trade Commission’s (KFTC) review of Delivery Hero’s US$4 billion deal to acquire Woowa Brothers could take as long as a year, reported The Korea Times. 

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    “We have 120 days to review the merger and if we think we have not looked through enough data, we can request more time. I think we’ll need more time for this deal. It will take longer,” a KFTC official said. 

    Delivery Hero applied for a merger review from the antitrust regulator on December 31, last year. Considering the 120-day deadline the KFTC’s decision was expected on April 28. Previously, the government took a little over four months to review and approve the merger of eBay Korea and G-Market.

    However, the KFTC official said Delivery Hero and Woowa Brother’s M&A deal needs a more comprehensive review as it could potentially limit healthy competition in the online food delivery service market. 

    Currently, Woowa Brothers’ food delivery application Baedal Minjok (Baemin) takes up 55.7% of the market share. If Delivery Hero takes over Baemin, it will own almost 100% of the market share as it already owns No.2 player Yogiyo and No.3 player Baedaltong that comprise 33.5% and 10.8%, respectively.

    Full Content: Korea Times

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.