Germany’s Delivery Hero (DH) gained five more months until January to complete the divesture of South Korea’s No.2 food delivery app Yogiyo in return for its acquisition of No.1 player Baedal Minjok (Baemin).
The Fair Trade Commission (FTC) said Thursday that it decided to extend the deadline by five months for DH Korea, the local subsidiary of the Berlin-based food delivery platform, to sell Yogiyo.
DH asked for approval of a merger with Woowa Brothers, operator of Bamin, after signing a deal to take over an 88 percent stake in Woowa Brothers last year at around $4 billion. The FTC has conditionally approved the plan, requiring DH to sell Yogiyo by August 2 on concerns of market monopoly. The regulator has also ordered DH to maintain current business conditions and service quality until it finishes the sale.
Last week, DH asked the watchdog that it needs more time to complete the divesture.
The FTC recognized the difficulty in completing the sale by Aug.2, although DH had immediately embarked on a procedure to sell Yogiyo and not delayed the process. DH has now until January 2 in 2022 to unload Yogiyo.
DH has reportedly been in talks with a consortium of three companies to sell Yogiyo. Industry sources said GS Retail Co., operator of convenience store GS25, is said to be considering joining the buyout race by forming a consortium with a private fund.
By Choi Mira
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