On Thursday, South Korea’s antitrust regulator gave approval for UBS Group to acquire Credit Suisse Group, stating that the merger is unlikely to have an impact on competition in the local market.
Overseas companies that make sales of 30 billion won in South Korea are required to report their mergers to the regulator. UBS and Credit Suisse, two companies based in Switzerland, have been reviewed in accordance with this regulation.
The Fair Trade Commission (KFTC) released a statement stating that, after reviewing the process, they have determined that the move is unlikely to limit competition in the market for all types of mergers.
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The KFTC conducted an investigation on the effects of vertical and horizontal mergers in various industries including brokerage, acquisition advisory, debt capital market, and asset management.
“All four areas where the horizontal merger is set to occur are already participated in by numerous players that engage in intense competition,” the KFTC said. “Even after the merger, UBS and Credit Suisse are not likely to raise prices, as their shares are small.”
The regulator noted that the two investment banks lack significant market presence in South Korea, which does not disrupt the operations of other competitors.