HHI-DSME marriage receives Chinese blessing
Merger between Hyundai Heavy Industries and Daewoo Shipbuilding and Marine Engineering gets the nod from China.
Major hurdle cleared for merger as China gives its unconditional approval, reports Hellenic Shipping News. The deal now needs permits from Korea, the European Union and Japan. Chinese authorities said a review under Article 26 of the Anti-Trust Act had reached the conclusion that no restriction of competition would be caused by the merger.
Industry insiders have expressed concern that China, Korea’s biggest shipping rival, might oppose the merger and a KSOE spokesman said the company had made efforts to mollify China’s concerns. The EU has the strictest rules governing market competition and is expected to make a final decision in early 2021.
If Hyundai Heavy Industries succeeds in acquiring DSME, a true leviathan of the shipbuilding industry will be created. As things stand, the two companies account for 70-80 per cent of the world’s LNG and very large crude carriers.
