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South Korean gaming firm Netmarble Corp. has taken administrative steps to wrap up its buyout of Woongjin Coway Co., the country’s top water purifier rental company, while facing potential resistance from Coway union.

Netmarble filed for an antitrust review with the Fair Trade Commission last week and has been in talks with Woongjin and government officials to speed up the deal, according to investment banking sources on Thursday.

Earlier last month, Netmarble was named the preferred bidder for a 25 percent stake in Woongjin Coway in a deal that is expected to cost around 1.8 trillion won ($1.5 billion).

The parties had originally aimed to complete due diligence by Nov. 8 and enter into a binding agreement by Nov. 12. But Netmarble is said to have asked for more time due to its unfamiliarity with the rental industry.

“There are instances of buyers filing for an antitrust review before the actual signing to speed up the acquisition,” said an antitrust lawyer from a major law firm. “The review normally takes about six weeks so if there are no unresolved issues, the deal could be completed one to two weeks ahead of schedule.”

With the signing to be held this month at the latest, the question is now whether Netmarble would be able to close the deal by the end of December in time to receive Woongjin’s year-end dividends. Given its planned ownership for a 25 percent stake, its dividend payout could reach 11 billion won, according to experts.

There may be last-minute hiccup due to Woongjin Coway’s labor unions, who have been striking in front of Netmarble headquarters to demand guarantee on full-time employment.

Netmarble in its third-quarter earnings call on Tuesday admitted that “labor issues were a part of the business environment” and that they “could impact the acquisition.”

The company in the call said “nothing has been finalized yet” as it is still conducting due diligence. It also refrained from commenting on whether it was planning to channel its 8.89 percent stake in NCSoft into funding the Woongjin buyout.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]