[
THE INVESTOR] The Fair Trade Commission has reportedly objected to the planned merger and acquisition deal between IPTV operator
SK Broadband and cable TV firm CJ HelloVision.
The antitrust agency said in its July 4 evaluation report of the merger plans to
SK Telecom -- the parent company of SK Broadband -- that the transaction should not be allowed as it could hamper fair competition in the market.
The combination of SK Broadband, a wholly owned subsidiary of No.1 mobile carrier SK Telecom, and CJ HelloVision, if achieved, is expected to create an overwhelming force in the mobile as well as broadcasting sectors.
SK Telecom currently dominates the local mobile network sector with its market share reaching 50 percent while CJ HelloVision is the largest cable TV firm in the nation.
SK Telecom is scheduled to submit a report to the FTC this month to specify the measures it can offer to cushion the potentially negative effects of the M&A deal on the telecom and broadcasting sectors.
Meanwhile, a final approval for the merger will be given by the Ministry of Science, ICT and Future Planning and the Korean Communications Commission as early as the end of this month.
By Kim Young-won (
wone0102@heraldcorp.com)