EU, HHI-DSME Interim Report of Combined Examination

 

EU, HHI-DSME Interim Report of Combined Examination

 

 

The European Commission (EC), which recently resumed its review of Hyundai Heavy Industries Group's acquisition of Daewoo Shipbuilding & Marine Engineering, reported interim results to Hyundai Heavy Industries.

According to industry information, the EC notified Hyundai Heavy Industries of its mid-term review report on the business combination with Daewoo Shipbuilding & Marine Engineering on the 11th.

 

 

 

 

 

 

 

 

 

 

 

The EC is reviewing the possibility of hindering market competition due to the business combination between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering, which has produced interim results based on investigations and analyses so far.

The EU reportedly said in the report that concerns over competition restrictions in tankers, container ships and offshore plants have been resolved, but concerns have still not been resolved in the gas transport sector.

 

 

 

 

 

 

 

 

 

 

 

 

 

The industry interprets the results of the mid-term review as meaning that it will proceed with the examination by narrowing the scope to gas lines since concerns over other types of vessels have been resolved. An official of Hyundai Heavy Industries said, "We received an interim review report from the European Commission and the report said that additional explanation is needed for the gas line. We will submit additional necessary data in the near future."

"In the past, Korean shipbuilders dominated gas lines such as LNG carriers, but competition has rather increased, as seen by the Chinese company's name on its Qatar business," another industry source said.

Meanwhile, the EC resumed the screening process, which had been temporarily suspended in the wake of the spread of the new coronavirus infection, on the 3rd of last month, and proposed a deadline of September 3. In April, the executive committee said it would temporarily suspend the screening process because Hyundai Heavy Industries Group and Daewoo Shipbuilding & Marine Engineering Co. could not provide the necessary information for the review due to the spread of COVID-19.

 

 

 

 

 

 

 

 

 

 

 

 

Starting with the Fair Trade Commission (FTC) in July last year, Hyundai Heavy Industries Group has been undergoing a full-fledged review of corporate combinations in six countries, and received its first approval in Kazakhstan in October of the same year.

It also submitted applications to China in July last year, Kazakhstan in August and Singapore in September, respectively, and began prior consultations with Japan in September.

If all of each country's corporate combination reviews are passed, Korea Shipbuilding & Marine Engineering and Korea Development Bank will exchange their shares with each other and complete the process of acquiring Daewoo Shipbuilding & Marine Engineering.