South Korean restaurant owners voice concerns over $4 billion Delivery Hero deal



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South Korean restaurant owners voice concerns over $4 billion Delivery Hero deal

A raft of restaurant groups’ representatives in South Korea had voiced sheer concern during a parliamentary session on Monday, the 6th of January 2020, over S. Korea’s homegrown food delivery giant, Delivery Hero’s planned $4 billion acquisition deal of its local rival which in effect would monopolize nearly 99 per cent of restaurant deliveries in the far-east Asian nation and could lead to higher fees following a undermining of competition.

In point of fact, latest round of rancorous dispute from S. Korean restaurant owners’ groups comes over the heels of a Delivery Hero announcement last month, in which the second-largest food delivery app in South Korea said would purchase its larger rival leading US lender, Goldman Sachs backed Woowa Borthers at a $4 billion cash-and-stock takeover deal, while a merger of the two industry giants would create an entity that would be able to control nearly 99 per cent of the nation’s food delivery apps as beforementioned, data from the mobile big data platform, IGAWorks had revealed.

Meanwhile, South Korean restaurant owners, who had already been scuffling amid a sharply slowdown fear after exchanging fresh barbs with neighbouring Japan a couple of months earlier that led to the nation to ban all Japanese products including foods and food derivatives, raised concerns that the planned merger, which still requires an antitrust approval, would eventually hike commissions for taking orders through food delivery apps, as a franchisee restaurant owner, Kim Kyung-moo said in a press conference at the South Korean parliament on Monday (January 6th), “The biggest problem is that the companies can move the market to whatever direction they want to. ”