FTC approves NS Shopping’s Homeplus Express 1,206hundred-million-won acquisition approval
The Fair Trade Commission 6 month 12 day approved NS Shopping’s acquisition of Homeplus Express’s operations. The acquisition price was 1,206 hundred million won, and an expedited review was conducted in consideration of Homeplus’s rehabilitation proceedings.
The Fair Trade Commission 6 month 12 day approved NS Shopping’s acquisition of the Homeplus Express division’s operations. The FTC determined that the combination was unlikely to substantially restrict competition in the market. The approval was decided on 12.
The transaction involves NS Shopping, an affiliate of Harim, acquiring all operations of the Homeplus Express division from Homeplus for 1,206 hundred million won. The transaction covers all operations related to the offline Express retail network. The transaction price was reported as 1,206 hundred million won.
The FTC conducted an expedited review in consideration of the ongoing rehabilitation proceedings for Homeplus. The FTC said the reason for the review was that the acquisition of the operations was being conducted as part of a rehabilitation plan. The expedited review procedure was applied.
The Fair Trade Commission determined that this combination would result in 11 vertical combinations and 2 mixed combinations. The vertical combination is a structure linking Harim’s production and manufacturing product groups with Homeplus Express’s distribution network. The mixed combination includes the integration of distribution and sales channels.
The Fair Trade Commission listed chicken, fresh pork, fresh duck, processed meat products, ramen products, instant rice, frozen dumplings, home meal replacements, and pet food as products subject to vertical combination. Harim is a corporate group that has established vertical integration from grain sourcing through processing and distribution. NS Shopping also operates TV home shopping and e-commerce channels.
The Fair Trade Commission explained that Homeplus Express belongs to the supermarket chain sector (SSM), along with GS The Fresh, E-Mart Everyday, and Lotte Super. SSMs have an average food share of 93% of total sales. The Fair Trade Commission viewed the increase in food sales through online distribution channels as exerting considerable competitive pressure.