Fair Trade Commission "Swift Approval of EV M&A Reviews Including Hyundai Motor-LG Energy Solution Joint Venture"

[Asia Economy Sejong=Reporter Dongwoo Lee] Recently, as the global electric vehicle (EV) market is rapidly growing, mergers and acquisitions (M&A) among related companies have been actively taking place.

On the 26th, the Korea Fair Trade Commission (KFTC) introduced trends in EV market M&A and key review details. The KFTC analyzed that M&A activities are actively progressing throughout all processes necessary for EV production, from raw material supply markets to parts and complete vehicle manufacturing markets.

In particular, M&A related to the core component, lithium-ion batteries, accounts for a large portion, and structural reorganization for EV production is also occurring in the commercial vehicle market such as buses and trucks. A representative case is EV manufacturers pursuing joint ventures with battery manufacturers overseas to ensure stable supply of batteries (lithium-ion batteries) necessary for EV production.

In the case of Hyundai Motor Group, it established a joint venture in Indonesia with LG Energy Solution, each investing 50%. This is to produce and sell lithium-ion batteries for EVs needed for Hyundai Motor Group’s next-generation electric vehicles. Considering the rapid growth of the EV market and the increasing battery demand from competing EV manufacturers, the KFTC judged that concerns about foreclosure due to vertical integration are low and approved the deal.

On the 3rd, LG Chem also received approval under the judgment that there are few competition concerns for acquiring 50% of Toray Hungary shares to expand the supply chain of EV battery separators in Europe.

The KFTC approved corporate mergers between raw material suppliers and companies manufacturing cathode and anode materials, which are core materials composing lithium-ion batteries, including companies from Germany, Belgium, Japan, and China, to ensure stable raw material supply and technological partnerships.

Cathode and anode material manufacturers from Germany, Belgium, Japan, and China pursued corporate mergers with raw material suppliers to secure more stable raw material supply and to achieve business synergy through technological alliances.

There were also cases of cooperation among commercial vehicle manufacturers from various countries in the overseas EV market.

China’s electric commercial vehicle manufacturer BYD and Japan’s Toyota-affiliated commercial vehicle specialist manufacturer Hino applied to establish a joint venture in China for electric commercial vehicle research, development, and manufacturing. The KFTC approved the deal, seeing no impact on the domestic market.

The KFTC stated, "We will promptly review and approve corporate mergers that do not raise concerns about restricting competition, actively supporting the activation of the EV market by responding to global eco-friendly policies and assisting domestic companies’ overseas expansion."

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