Hyundai-Daewoo merger to be finalized in the first half of 2021
Hyundai Heavy Industries Holdings (HHIH), the South Korean shipbuilding giant, plans to complete the acquisition of Daewoo Shipbuilding & Marine Engineering (DSME) by the end of the first half of 2021.
This was announced in his New Year's message on 4 January by Kwon Oh-gap, Chairman of HHIH. According to him, while the deal has faced some delays, within this quarter it will be finalized.
The proposed tie-up will see HHI taking over Geoje-based DSME from Korean state lender Korea Development Bank, the largest shareholder in the company with a 55.7 percent stake.
Hyundai Heavy Industries Group has reorganized into two companies, Korea Shipbuilding&Offshore Engineering Co (KSOE), a shipbuilding arm of the group, in order to continue with the expected acquisition.
In the coming months, approvals from South Korea, Japan and the European Union are still required to secure the $1.8 billion merger.
The proposed merger is approved by the Chinese State Administration for Market Regulation (SAMR) in late December 2020, explaining that the agreement would not violate antitrust laws or endanger competition in the region.
Maritime Business World