Page 32 - FAIR TRADE COMMISSION 2023 ANNUAL REPORT

Fair Trade Commission Annual Report 2023
30
The proposed merger drew attention in every sector. Considering the critical impact of Uni-President’s acquisition on consumers, suppliers and other distributors, the Commission started the reviewing procedure immediately after accepting the case. Besides inquiring into the viewpoints of competing retailers, the Commission also invited upstream suppliers, concerned trade associations, scholars and specialists, the competent authority of the industry and the consumer protection authority for in-depth discussions and to offer their opinions.
The merging parties did not think that the merger would change the existing market structure, but considered that it could also stabilize the management of Presicarre, maintain the corporate culture, as well as protect the interests of employees and consumers. The two companies also made a number of promises to promote the overall economic benefit. However, suppliers, competing retailers and the public still had their doubts, such as the retail channels of the merging parties growing more complete, the market becoming more concentrated, the dominance of Uni-President in the upstream food product manufacturing industry affecting the management of downstream competing retailers, and small and medium suppliers ending up in a more disadvantageous position when making transactions.
In response to the above-mentioned doubts, the Commission cautiously evaluated and analyzed the case and concluded that the overall economic benefit of the merger would outweigh the disadvantages from competition restraints. In the end, the Commission decided not to prohibit the merger. Nevertheless, undertakings were attached to eliminate the concerns about competition restraints being created.
During the review process, Uni-President made promises to take measures to safeguard the interests of small and medium suppliers, to continue to import diverse products, to participate in public welfare activities, and to support organic and agro-ecological products to benefit the overall economy. The Commission believed that approving the merger with undertakings attached could bring multiple wins for businesses, consumers and the general public.