Watchdog OKs Lotte's takeover of distilled liquor maker

SEOUL, March 1 (Yonhap) -- South Korea's anti-trust watchdog said Sunday it gave
the greenlight for a subsidiary of retail giant Lotte Group to acquire the
nation's second-largest maker of "soju," a popular distilled liquor.
The Fair Trade Commission (FTC) gave the regulatory nod nearly three months after
Lotte Liquor BG Co. agreed with Doosan Corp. to buy the latter's soju-making unit
for 503 billion won (US$328 million).
"Lotte's wide-range distribution network is not likely to hamper the entry of its
competitors into the liquor supply market," the commission said. "Lotte's
takeover rather can lower soju prices by spurring competition."
Lotte Group controls the nation's biggest department chain and a leading discounter.
The deal is expected to help Lotte emerge as a stronger competitor to Jinro Ltd.,
which controls about 50 percent of the local soju market. Doosan's liquor unit
owns a 15 percent market share.
Lotte has been striving to boost its liquor business in pursuit of a new growth
engine. The family-owned conglomerate is also believed to have submitted a bid to
buy the nation's second-biggest beer maker Oriental Brewery, now owned by Belgian
brewer InBev NV.
pbr@yna.co.kr
(END)