LG Uplus gets final nod to acquire CJ Hello, jumps to No. 2 in pay TV market

South Korea’s No. 3 wireless carrier LG Uplus Corp. was cleared to acquire the country’s biggest cable operator CJ Hello Co. after nine months of regulatory setbacks due to antitrust issues.

The Ministry of Science and ICT on Sunday said it gave the final nod on condition that LG Uplus lowers the wholesale costs of its budget phone plans to maximum 66 percent to promote the low-end phone market.

With the approval, LG Uplus would complete its purchase of CJ Hello’s 50 percent stake worth 800 billion won ($680.8 million) and immediately jump to No. 2 in the country’s pay TV market after KT Corp. It would secure 8.25 million pay TV subscribers and 1.23 million subscribers for its budget phone plans, commanding a 24.7 percent and 15.2 percent share in the respective markets as of the first half of this year.

The ministry urged the companies to take more efforts to further public interests, such as ensuring fair competition, protesting viewer rights and bolstering the local media broadcasting industry.

The 4.7-trillion-won merger between SK Broadband Inc., a subsidiary of Korea’s top mobile carrier SK Telecom Co., with t-broad, the country’s No. 2 cable TV operator, is expected to be finalized next year.

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