The state antitrust regulator has conditionally approved Hanwha Group's plan to acquire Daewoo Shipbuilding and Marine Engineering(DSME).

The Fair Trade Commission(FTC) on Thursday announced its decision to allow five Hanwha affiliates, including Hanwha Aerospace, to acquire a 49-point-three-percent share of DSME under three conditions.

The stipulations include a ban on supplying vessel parts at discriminatory prices as well as any unfair refusal to provide technical information on parts to rival companies when requested via the state-run Defense Acquisition Program Administration.

Hanwha and DSME are also restricted from providing trade secrets of rivals to its affiliates. They will be required to submit progress reports to the FTC for the next three years.

In its review of the deal, the regulator was primarily concerned with a possible impediment to market competition resulting from the vertical merger between Hanwha, the top supplier of ten key military shipbuilding parts, and DSME, the leading firm in submarine construction.

With the earlier approval from regulators of the European Union and six other economies, the acquisition will likely be completed next month.