FTC conditionally approves merger plan under gov't-led petrochemical restructuring scheme

The Fair Trade Commission (FTC) has conditionally approved a merger plan aimed at restructuring South Korea's petrochemical industry, which has been struggling due to a prolonged downturn and supply glut. The FTC reviewed the merger between Lotte Chemical Corp., Lotte Daesan Petrochem Corp., HD Hyundai Oilbank Co., and HD Hyundai Chemical Co., and approved it with the condition that price increases be limited.

As part of the plan, HD Hyundai Chemical will merge with Lotte Daesan Petrochem, while Lotte Chemical will acquire shares in the integrated HD Hyundai Chemical. The FTC's approval comes amid the key sector's challenges, including reduced competition and declining price competitiveness compared to Chinese rivals. The FTC has ordered the companies to cap changes in domestic prices for LDPE and EVA over the next five years.

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