Korea Seven’s takeover of rival Ministop cleared by regulator
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South Korea’s antitrust regulator said Tuesday it has decided to approve a deal by Korea Seven Co., the operator of 7-Eleven convenience stores, to buy its smaller rival Ministop Korea Co.
In January, the country’s retail giant Lotte inked a deal to acquire a 100 percent stake in Ministop Korea for 313.3 billion won (US$257 million). Korea Seven, an affiliate of Lotte, eventually bought Ministop Korea.
The Fair Trade Commission (FTC) said it has given the green light to the deal, saying that the takeover is not expected to hamper market competition.
South Korea’s convenience store market has been dominated by BGF Retail’s CU and GS Group’s GS25, with 7-Eleven, Shinsegae Group’s Emart 24 and Ministop being minor players.
The FTC said its approval is expected to spur three-way competition in the market as the takeover will help Korea Seven cement its market status as the No. 3 player.
Korea Seven operates around 11,170 convenience stores across the country.
Ministop is an affiliate of the Japanese retail group Aeon Group and opened its Korean operation in 1990 via a business tie-up with South Korea’s leading food maker Daesang. Ministop Korea runs around 2,600 convenience stores.
Questions & Answers
Q.Which company acquired Ministop Korea, and who owns the acquiring company?
Which company acquired Ministop Korea, and who owns the acquiring company?
Korea Seven Co., operator of 7-Eleven convenience stores, bought Ministop Korea. Korea Seven is an affiliate of the South Korean retail giant Lotte, which initially inked the deal to acquire Ministop Korea in January.
Q.What was the purchase price for Ministop Korea?
What was the purchase price for Ministop Korea?
Lotte agreed a deal to acquire a 100% stake in Ministop Korea for 313.3 billion won, which was equivalent to US$257 million at the time the deal was inked in January.
Q.What is the South Korean regulator's view on the impact of this acquisition on market competition?
What is the South Korean regulator's view on the impact of this acquisition on market competition?
The Fair Trade Commission (FTC) approved the deal, stating it does not expect the takeover to harm market competition. It believes the acquisition will help Korea Seven become the No. 3 player, spurring three-way competition.
Q.How many stores does the combined entity of Korea Seven and Ministop operate?
How many stores does the combined entity of Korea Seven and Ministop operate?
Korea Seven operates approximately 11,170 convenience stores. Ministop Korea runs around 2,600 convenience stores, so the combined entity would operate around 13,770 stores across the country.
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