Watchdog approves merger between 2 liquor giants

South Korea's antitrust watchdog on Tuesday approved the merger between Hite Brewery Co. and Jinro Co., saying the liquor giants' business consolidation will not hamper market competition.

   Hite Brewery is the country's dominant beer maker, and Jinro is the leader in the market of soju, a Korean distilled beverage made from rice and other starches. Jinro was taken over by Hite Brewery in 2005.

   "There is no restraint that their merger would have on market competition," the Fair Trade Commission said.

   With the approval, the two will emerge as a single company that leads beer and soju markets here with combined annual sales likely to reach about 1.7 trillion won (US$1.6 billion).

   They will each hold shareholders' meetings on July 28 before officially announcing their consolidation on Sept. 1, according to officials of the two companies.

   Last year, Hite Brewery posted 1.02 trillion won in sales, making up 53.2 percent of the nation's beer market. Jinro logged about 700 billion won in sales with its soju market share of 48.9 percent in the same year, according to the FTC. (Yonhap News)