Germany's Delivery Hero will sell South Korean food delivery app Yogiyo as part of conditions for regulatory approval of its $4 billion takeover of top South Korean food delivery app owner Woowa Brothers.
The sale clears a major hurdle for Delivery Hero in gaining the dominant position in the world's third-largest online food delivery market, as competition heats up amid accelerated demand triggered by the coronavirus pandemic.
Berlin-based Delivery Hero agreed last year to buy Woowa for whom the buyout is a lifeline in an intensely competitive market.
The Korea Fair Trade Commission (KFTC) said on Monday it would approve the takeover on condition that Delivery Hero sold its entire stake in the country's No. 2 food delivery app, Yogiyo, in six months, with possible extensions.