Hite Brewery Co. has been granted regulatory approval by the Korea Fair Trade Commission (FTC) for its acquisition of Korean spirits company Jinro.

The FTC, however, has imposed some conditions on the purchase.

Hite and Jinro must keep future price increases below consumer inflation and retain separate sales and marketing departments. The two companies must also make twice-yearly shipment reports to authorities.

The FTC has also asked the two companies to submit plans on how they will avoid abusing their leading market position. Hite controls around 58% of the beer market, while Jinro has around 55% of the market for the national spirit, Soju.

Hite, which is 25%-owned by Carlsberg, is leading a consortium which signed a definitive contract to acquire Jinro for KRW3.4 trillion (US$3.25bn) early last month.