Delivery Hero SE to receive conditional regulatory approval from Korea Fair Trade Commission with respect to joint venture with South Korean Woowa Brothers Corp.
Delivery Hero SE / Key word(s): Mergers & Acquisitions/Regulatory Approval
Delivery Hero SE: Delivery Hero SE to receive regulatory approval from Korea Fair Trade Commission with respect to joint venture with South Korean Woowa Brothers Corp., conditional upon divestiture of Delivery Hero's Korean subsidiary and behavioral remedies on the Korean subsidiary until completion of divestiture
Berlin, December 28, 2020 - This morning in South Korea, the Korea Fair Trade Commission ("KFTC") issued a press release stating that it will approve Delivery Hero SE's ("Delivery Hero") previously announced joint venture with Woowa Brothers Corp. ("Woowa") under the condition of the divestiture of Delivery Hero's 100% 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.
Further, Delivery Hero will be ordered by the KFTC to maintain the status quo of Yogiyo until the completion of the divestiture of Yogiyo as follows:
1. Separate and independent operation of Yogiyo from the Delivery Hero's and/or Woowa's other delivery apps,
2. Prohibition of any change in the actual commission rate applied to restaurants,
3. Monthly use of at least the same promotion amount used in the same month in the previous year and prohibition on discrimination,
4. Prohibition on any change in delivery app access/connection speed, user interface, information provided, and prohibition on coerced conversion, or solicitation to convert, to the parties affiliate delivery apps,
5. Prohibition on disadvantageous changes to the working conditions of Yogiyo riders and prohibition on soliciting them to Woowa, and
6. Prohibition on transfer and sharing of data.
Delivery Hero had announced the purchase of shares in, and the establishment of a joint venture with the management of Woowa, the operator of South Korea's largest food delivery platform, on December 13, 2019. The press release of the KFTC summarizes the KFTC's final decision conditionally approving the closing of the strategic partnership. Delivery Hero expects to receive the final decision in writing and closing to occur in the first quarter of 2021.
This release may contain forward looking statements, estimates, opinions and projections with respect to anticipated future performance of Delivery Hero SE ("forward-looking statements"). These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "intends," "may," "will" or "should" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. Forward-looking statements are based on the current views, expectations and assumptions of the management of Delivery Hero SE and involve significant known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not such results will be achieved. Any forward-looking statements included herein only speak as at the date of this release. We undertake no obligation, and do not expect to publicly update, or publicly revise, any of the information, forward-looking statements or the conclusions contained herein or to reflect new events or circumstances or to correct any inaccuracies which may become apparent subsequent to the date hereof, whether as a result of new information, future events or otherwise. We accept no liability whatsoever in respect of the achievement of such forward-looking statements and assumptions.
VP, Head of Investor Relations
|Company:||Delivery Hero SE|
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|EQS News ID:||1157494|
|End of Announcement||DGAP News Service|