HSBC/KEB wins antitrust OK, further hurdles remain

SEOUL, March 5 (Reuters) - HSBC Holdings Plc's (HSBA.L: Quote, Profile, Research, Stock Buzz) (0005.HK: Quote, Profile, Research, Stock Buzz) $6.3 billion purchase of a stake in Korea Exchange Bank (KEB) (004940.KS: Quote, Profile, Research, Stock Buzz) will not hinder market competition, South Korea's Fair Trade Commission said on Wednesday.

However, an FTC spokesman added that the final decision on the deal belonged to "financial authorities," referring to the Financial Services Commission.

British-headquartered HSBC applied for an antitrust review of its planned purchase in October.

"The Fair Trade Commission has analysed the impact of the merger on eight different market segments and has concluded that competition will not be impacted in any segment," the anti-trust body said in a statement.

HSBC had announced in early September that it agreed to buy a 51.02 percent stake in KEB, South Korea's sixth-biggest bank, from U.S. private equity firm Lone Star [LS.UL], in a deal that could propel HSBC into the top ranks of Asia's third-largest banking market.

(Additional reporting by Cheon Jongwoo)

(Reporting by Marie-France Han and Rhee So-eui, editing by Keiron Henderson)