MOC launches anti-monopoly investigation of Lotte's purchase of Times Retail

On 16th November, the Ministry of Commerce (MOC) has launched an anti-monopoly investigation of South Korea-based Lotte's purchase of Times Retail.

On 20th October, Lotte announces that it bought a 100% stake in Times Retail for HK$4.87b. However, according to the existing law in China, the purchase must get through the anti-monopoly investigation by MOC.
According to ‘Provisions of the State Council on the Standard for Declaration of Concentration of Business Operators’, the business operators shall file a report for the concentration to the Anti-trust Administration in advance if any one of the following thresholds is met:
a) the total global business revenue of last fiscal year of all business operators attending the concentration is over RMB 10 billion, as well as among which the business revenue of last fiscal year in the territory of the PRC of each of at least two business operators are over RMB 400 million;
b) the total business revenue of last fiscal year in the territory of the PRC of all business operators attending the concentration is over RMB 2 billion, as well as among which the business revenue of last fiscal year in the territory of PRC of each of at least two business operators are over RMB 400 million.

For the turnover of Times Retail were more than 4 billion Hong Kong dollars last year, an anti-monopoly investigation by MOC is inevitable. Will the MOC approve the purchase?

Lehman lawyer HaoJunbo remarks that according to the Anti-monopoly Law of the People’s Republic of China, it may be assumed to be have a dominant market position where a business operator is under any of the following circumstances:
a) the relevant market share of a business operator accounts for1/2 or above in the relevant market;
b) the joint relevant market share of two business operators accounts for 2/3 or above; or
c) the joint relevant market share of three business operators accounts for 3/4 or above.
From the view of market share, this purchase will not constitute a monopoly. Lotte and Times Retail together are only 70 in China, but Wal-Mart, Carrefour, RT-Mart, etc. have already more than 100. However, according to international anti-monopoly practices, there may be a different conclusion considering about specific regions or industries.