Regulator OKs KG Group's takeover of SsangYong MotorKorea's antitrust regulator said Wednesday it has approved a deal by chemical-to-steel business group KG Group to buy the debt-ridden SsangYong Motor, as the takeover does not hurt market competition.
In July, KG asked the Fair Trade Commission (FTC) to review its deal to acquire some 61 percent stake in SsangYong Motor for 950 billion won ($708 million).
The FTC said it has given the green light to the deal, saying that the acquisition is not likely to hamper competition in related markets, including cold rolled steel sheets and automaking.
SsangYong Motor, the Korean unit of Mahindra & Mahindra, has been under court receivership since April 2021 as its parent company failed to find a new investor amid the Covid-19 pandemic and financial difficulties.
The regulator said the latest approval of the takeover will help SsangYong Motor normalize its operation and strengthen its competitiveness.