[Featured Stock] Lotte Confectionery and Lotte Food Stocks Rise on Merger News

[Asia Economy Reporter Kwon Jae-hee] Shares of Lotte Confectionery and Lotte Foods, food subsidiaries of Lotte Group, are rising strongly on the 24th following news of their merger.

As of 9:56 a.m. on the same day in the KOSPI market, Lotte Confectionery is trading at 124,500 KRW, up 7.33% from the previous trading day.

Lotte Foods is recording 346,000 KRW, up 5.81%.

The two companies held a board meeting the day before and resolved to merge in a format where Lotte Confectionery absorbs Lotte Foods. They plan to complete the merger on July 1 after obtaining shareholder approval at the general meeting scheduled for May 27.

The market share of the integrated corporation in the ice cream sector is expected to rise to first place, surpassing Binggrae, which acquired Haitai Ice Cream.

Shim Eun-joo, a researcher at Hana Financial Investment, analyzed, "With the merger of the two companies creating a comprehensive food enterprise, cost reduction as well as strengthening competitiveness in the ice cream business is expected. By building a food portfolio spanning the life cycle from infant formula to silver food, brand competitiveness will also be enhanced."

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