Seoul - Daewoo Shipbuilding & Marine Engineering is in search of a new owner again after a merger plan with its larger rival Hyundai Heavy Industries failed due to an EU veto on monopoly concerns. The European Commission announced Thursday its prohibition for the merger, claiming that the deal could reduce competition in the global LNG carrier market amid soaring energy prices.
Back in 2019, Hyundai Heavy announced it would acquire a 55.7 percent stake in Daewoo Shipbuilding from its largest shareholder Korea Development Bank for 2 trillion won ($1.68 billion). Their merger could have created the world’s largest shipbuilder with some 60 percent market share in the lucrative global LNG ship market alone.
Antitrust regulators in six rival countries started their own review for the deal, with three countries, including China, Singapore and Kazakhstan, approving the deal thus far. Hyundai Heavy expressed regret over the EU decision, saying market share is not a key factor in the bidding-based shipbuilding industry where the figures always change as the results of new biddings.READ MORE