Fair Trade Commission Approves Binggrae's Acquisition of Haitai Ice Cream

[Asia Economy Reporter Moon Chaeseok] The Fair Trade Commission announced on the 29th that it approved Binggrae's acquisition of Haitai Ice Cream on the 28th.

Binggrae signed a contract to acquire 100% of Haitai Ice Cream's shares on March 31 and reported the corporate merger to the Fair Trade Commission.

Lee Sung-gyu, head of the Corporate Merger Division at the Fair Trade Commission, stated, "We have determined that this corporate merger does not pose a risk of restricting competition in the domestic ice cream market."

The Fair Trade Commission viewed that even with the merger of Binggrae and Haitai Ice Cream, Lotte Group affiliates (Lotte Confectionery and Lotte Food) will still maintain their position as the number one player in the domestic ice cream market.

Analysis of price increase pressures also showed no incentive for price hikes, which was another reason for approving the corporate merger.

According to the Korea Agro-Fisheries & Food Trade Corporation, domestic ice cream sales decreased from 2.0184 trillion won in 2015 to 1.4252 trillion won last year.