Mega M&As face antitrust hurdles from overseas amid mounting protectionism

South Korean industry leaders’ efforts to marry through M&As have hit a snag as countries with their major foreign competitors have turned stricter in antitrust evaluation amid growing protectionism triggered by the diplomatic and trade war between the world’s two biggest economies – the United States and China. According to the Fair Trade Commission and Korean Air Lines, the Korean Air-Asiana marriage currently requires merger endorsement from six antitrust agencies overseas in the US, the European Union, China, Japan, the UK and Australia. The process is mandatory in four of them – the U.S., the EU, China and Japan – and thus, the merger could fall apart if any one refuses to endorse it. The biggest hurdle is evaluation from China, the US and the EU. China currently focuses on the possibility of limiting competition on five routes Chinese national flag carriers are servicing with a combined market share of above 65% – from Seoul to Zhangjiajie (100%), Xian (96.3%) and Shenzhen (65.3%), and from Busan to Qingdao (100%) and Beijing (66.5%). “The company has submitted required data for about 10 times to the Chinese antitrust agency to actively respond to its review since the filing of the application in January 2021,” said a Korean Air official. The EU also is asking stricter corrective measures than usual, saying approval would be possible when Korea’s two biggest airlines distribute some of their air routes or landing slots to other carriers to address antitrust issues immediately. Story has more. <br/>