FTC Approves Gillette Acquisition of Rocket

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FTC Approves Gillette Acquisition of Rocket

The Fair Trade Committee (FTC) announced on December 23 that it approved the acquisition of Rocket Electricity by Gillette of the United States with some conditions.
The conditions are that Gillette should restrict domestic prices on Rocket's Alca batteries to less than 55 percent of consumer prices in the U.S. until the end of 2003.
The FTC approved the deal with certain conditions, despite anti-trust regulations, because it feels it is necessary for Korea's economy to induce foreign capital.
The approval will cause a certain amount of debate as to whether it is fair or unfair.
If Gillette acquires Rocket Co., its market share in the Korean market will jump from the current 34.3 percent to 59.8 percent and monopoly concerns will arise.
According to the current law, if the market share of the top company in an industry is more than 50 percent or the combined market share of the first to third-ranked companies in some industry is more than 70 percent, then a merger or acquisition (M&A) is restricted.
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