Delivery Hero's Woowa deal runs into Korean antitrust resistance

By Hans Seidenstuecker and Ludwig Burger FRANKFURT (Reuters) - Delivery Hero said it would challenge a recommendation by South Korea's antitrust watchdog that it should sell its Yogiyo subsidiary in order to secure approval for a planned $4 billion takeover of food delivery app owner Woowa Brothers. Delivery Hero's shares plunged 14% earlier on Friday following news of the recommendation by the Korea Fair Trade Commission's (KFTC) case team.

Reuters November 14, 2020 00:06:45 IST
Delivery Hero's Woowa deal runs into Korean antitrust resistance

Delivery Heros Woowa deal runs into Korean antitrust resistance

By Hans Seidenstuecker and Ludwig Burger

FRANKFURT (Reuters) - Delivery Hero said it would challenge a recommendation by South Korea's antitrust watchdog that it should sell its Yogiyo subsidiary in order to secure approval for a planned $4 billion takeover of food delivery app owner Woowa Brothers.

Delivery Hero's shares plunged 14% earlier on Friday following news of the recommendation by the Korea Fair Trade Commission's (KFTC) case team. By 1615 GMT, shares were 5.9% down on the day.

Delivery Hero's Chief Executive Niklas Oestberg told an analysts' call on Friday the German company may suggest alternative remedies to sway the regulator.

"We see it as a starting point for negotiations," Oestberg said. "On the negative side, we now see the process will take one to three months longer," he added.

The company said KFTC Commissioners will make their final decision after hearing both Delivery Hero's and the case team's positions.

(Editing by Riham Alkousaa and Barbara Lewis)

This story has not been edited by Firstpost staff and is generated by auto-feed.

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