The Fair Trade Commission conditionally approved the government-led restructuring plan involving Lotte Chemical, Lotte Daesan Petrochem, HD Hyundai Oilbank and HD Hyundai Chemical. HD Hyundai Chemical will merge with Lotte Daesan Petrochem, after which Lotte Chemical and HD Hyundai Oilbank will each hold a 50% stake in the combined company. The transaction will reduce the number of major suppliers in the LDPE and EVA markets from four to three, giving the three companies combined sales-volume shares of 82% and 95%, respectively. To address competition concerns, the FTC limited domestic price changes for five years based on export prices, required continued supply of products currently in production when requested by domestic buyers, and imposed safeguards on information sharing and executive appointments. The restructuring comes as the petrochemical industry faces a supply glut, a prolonged downturn and declining price competitiveness against Chinese rivals.