Shinsegae interested in acquisition of beer company despite denials

By Lim Chang-won Posted : November 1, 2018, 17:27 Updated : November 1, 2018, 17:27

[Courtesy of Oriental Brewery]


SEOUL -- In a saturated domestic market where competition is getting fierce due to brisk sales of imported products, South Korean retail giant Shinsegae is taking steps probably to acquire Oriental Brewery (OB), a major beer producer owned by a Belgian company.

Both companies made flat denials, but there has been market speculation that Shinsegae was recruiting people involved in the liquor industry for the possible acquisition of OB, which is owned by Anheuser-Busch InBev of Belgium and produces popular beverages including Cass, a top beer brand.

"Rumors have shaken our employees, hindering their work," an OB official said, warning his company could take legal action against groundless rumors. If Shinsegae acquires OB, it could become a top player in the domestic liquor market.

Shinsegae controls L&B, which specializes in liquor distribution, and Jeju Soju, based on the southern island of Jeju, which produces a clear, colorless distilled beverage of Korean origin. However, Shinsegae is an underdog because rival firms have a solid distribution network catering to ordinary restaurants and pubs.

 
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