The FTC said that the EU and the U.S. showed relatively significant interest in Korean companies. (image: Korea Bizwire)
SEOUL, Feb. 21 (Korea Bizwire) — The number of mergers and acquisitions (M&As) of Korean companies last year was the highest in 12 years, a recent report revealed.
According to the Fair Trade Commission (FTC), the number of M&As reached 766 last year, up 64 from 702 in 2018. It was the highest number since 2007, based on the number of cases.
However, the aggregate value of the transactions fell by 38.2 trillion won to 448.4 trillion won (US$372.3 billion).
According to the nationality of foreign companies that acquired Korean companies, 11 were from the European Union (EU), eight from the U.S., and two from China.
Some of the most prominent examples were the Estée Lauder Companies Inc.’s purchase of South Korean beauty company Have & Be Co., as well as Anchor Equity Partners’ acquisition of A Twosome Place, the second-largest coffee chain in the country after Starbucks.
In a related development, the FTC said that the EU and the U.S. showed relatively significant interest in Korean companies, and that offshore companies sought to enter and invest in the Korean market with M&As for Korean companies in various industrial sectors.
Of the total, the number of M&As by Korean companies was 598, an increase of 28 compared to the previous year.
However, the aggregate transaction amount decreased by 13.6 trillion won to 30 trillion won. In particular, the number of corporate M&As among affiliates in which conglomerates reorganize their business structure, is gradually decreasing.
Instead, the number of corporate M&As with non-affiliated companies, securing growth engines, increased by 55 cases and 4.7 trillion won. This type of transaction has been on the rise for the past four years.
The number of cases in which Korean companies combined with foreign companies stood at 23 for a total of 4.1 trillion won, up seven and 2.3 trillion won, respectively, from a year earlier.
The FTC is currently reviewing M&As between Woowa Brothers Corp., South Korea’s largest food delivery app operator, and Germany-based Delivery Hero, as well as a deal between Korea Shipbuilding & Offshore Engineering Co. and Daewoo Shipbuilding & Marine Engineering Co.
Ashley Song (ashley@koreabizwire.com)
