UK retail giant Tesco has received conditional approval from South Korea’s Fair Trade Commission regarding its planned US$1.74bn takeover of the South Korean Homever discount chain, according to Kamcity.com.
The Commission reportedly approved the acquisition on the condition that Tesco keeps prices of major products at some outlets within "competitive ranges".
Tesco finance director Andrew Higginson said the takeover will double Tesco’s outlets in Seoul and challenge Shinsegae Co as South Korea's biggest discount retailer.
Tesco has also said it plans to spend US$100m to build its sixth distribution centre in Korea.
In May, Tesco agreed to buy 36 outlets from the E.Land Group, which it plans to convert to its local Homeplus banner.