Increase in Cross-Industry M&A Last Year to Secure Future Growth Engines

Fair Trade Commission Analyzes 2020 Corporate Merger Trends

Number of Mergers and Acquisitions at 865... Up 12.9%
Meanwhile, the Amount Decreased by More Than Half... Due to Lack of Large Deals
Horizontal and Vertical Mergers Increased, but Mixed Mergers Decreased

Trends in the Number and Amount of Corporate Merger Reviews Over the Past 10 Years

[Sejong=Asia Economy Reporter Ju Sang-don] Last year, as companies pursued mergers with firms in different industries to secure future growth engines centered on new business areas, the total number of mergers and acquisitions increased by more than 10%.

On the 18th, the Korea Fair Trade Commission (KFTC) analyzed and announced the trends of mergers and acquisitions reviewed by the commission in 2020.

Last year, the number of mergers and acquisitions was 865, and the amount was 210.2 trillion won, compared to 2019 (766 cases, 448.4 trillion won), showing a 12.9% (99 cases) increase in number but a 53.1% (238.2 trillion won) decrease in amount.

Among the total 865 mergers and acquisitions, 181 cases (20.9%) were between affiliates, and 684 cases (79.1%) were between non-affiliates. Compared to 2019, mergers between affiliates decreased by 8 cases (4.2%), while mergers between non-affiliates increased by 107 cases (18.5%).

By type, horizontal mergers between competing companies increased from 58 cases in 2019 to 243 cases in 2020, and vertical mergers between companies at adjacent stages in production and distribution decreased from 64 cases to 53 cases. On the other hand, mixed mergers, which refer to mergers between companies in different industries other than horizontal and vertical, increased from 444 cases in 2019 to 569 cases.

The KFTC analyzed this as the result of companies making multifaceted efforts to restructure their business models and secure new growth engines in response to market changes despite the overall difficult economic conditions.

Meanwhile, last year, the KFTC imposed corrective measures on three mergers, including Delivery Hero-Woowa Brothers, due to concerns over competition restrictions during the review process.

This content was produced with the assistance of AI translation services.