Berlin-based online food delivery platform, Delivery Hero has been looking to acquire Woowa Brothers Corp. (“Woowa”) – a company that owns South Korea’s largest food delivery service Baedal Minjok, in a $4B (approx €3.6B) deal for quite some time now, but there was a catch!
The catch in the deal!
On December 28, 2020, the Korea Fair Trade Commission (KFTC) issued a press release stating that it will approve Delivery Hero SE’s previously announced joint venture with Woowa under the condition of the divestiture of Delivery Hero’s 100 per cent South-Korean subsidiary Delivery Hero Korea LLC. (“Yogiyo”) within six months from the date of which Delivery Hero will receive the KFTC’s final written decision. Delivery Hero will be allowed to request an extension of the sale period for up to six months under certain circumstances.