EU continues Hyundai-Daewoo merger review
According to the commission on June 4, the European Commission resumed screening of the acquisition of Daewoo Shipbuilding & Marine Engineering by Hyundai Heavy Industries after temporarily suspending the review in the midst of the coronavirus pandemic.
The EC said the screening's "provisional deadline" will be Sept. 3 — a break from July's original schedule — on its website. The platform had identified the test date two months ago as "suspended" despite the pandemic.
“Cargo shipbuilding is an important industry for the European Union. Maritime transport represents a substantial portion of the EU’s internal and external freight trade, with European shipping companies regularly purchasing vessels from DSME and HHI, two of the leading cargo shipbuilders in the world,” said the commission’s Executive Vice President Margrethe Vestager.
HHI had submitted to the EU its main review of its merger with DSME, completing the first stage of preliminary screening between two steps.
The deal is concluded when the two largest shipbuilders in the world get approval from six regions' antitrust watchdogs: South Korea, the European Union, Japan , China, Singapore and Kazakhstan.
Last year, the competition authority in Kazakhstan announced its approval of the merger of the two largest shipbuilders in the country, the first of the regions.
The commission said it is worried that the planned acquisition could replace DSME as a major competitive force in the markets of large container ships, oil tankers, and LNG and liquefied petroleum gas carriers.
“We are having a constructive dialogue with the EC. We will continue explaining that the proposed merger will allow the formation of a stronger business with a more efficient cost structure, which brings significant benefits and values to all stakeholders,” said an HHI official.
Maritime Business World