EU resumes review of Hyundai Heavy-Daewoo Shipbuilding merger, others may follow
By Nam Kwang-sik
SEOUL, June 5 (Yonhap)-- The European Union (EU) has started its review of the proposed merger between two major South Korean shipbuilders, and other countries may speed up their own probes into the deal that could create the world's No. 1 shipyard, industry sources said Friday.
In March, the European Commission (EC), the executive body of the EU, suspended its review of the acquisition of Daewoo Shipbuilding & Marine Engineering Co. (DSME) by its bigger local rival Hyundai Heavy Industries Holdings Co. (HHIH), due to the coronavirus pandemic.
But the EC resumed its investigation into the US$1.8 billion deal this week, with an aim to complete it by early September this year.

This photo shows the emblem of Daewoo Shipbuilding & Marine Engineering (DSME) in front of its Seoul Office. (Yonhap)
The deal needs regulatory approval from six countries -- South Korea, China, Kazakhstan, Japan, European Union and Singapore. Kazakhstan approved the deal in October 2019.
Market watchers said the EU and four other countries are tipped to accelerate their probes into the deal.
But the EU and Singapore have been cautious about the deal, which may hurt shipbuilders in their countries.
Japan has been taking issue with the deal at the World Trade Organization, requesting WTO dispute consultations with South Korea regarding Seoul's alleged subsidies to its shipbuilding industry.
In March 2019, Hyundai Heavy Industries signed a deal to buy a 55.72 percent stake in Daewoo Shipbuilding, in a deal that could create the world's biggest shipbuilder with a 21 percent share in the global shipbuilding market.
In a bid to acquire Daewoo Shipbuilding, Hyundai Heavy Industry Group split Hyundai Heavy Industries into two entities -- Korea Shipbuilding & Offshore Engineering Co. (KSOE), a sub-holding company that governs shipbuilding units under the group and a reorganized Hyundai Heavy Industries Co.
KSOE currently manages the group's three shipbuilding units -- Hyundai Heavy Industries, Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co.
If the acquisition deal goes ahead, Hyundai Heavy Industries Group will have four shipbuilders under its wing -- Hyundai Heavy, Hyundai Samho Heavy Industries, Hyundai Mipo Dockyard and Daewoo Shipbuilding.

This image shows an aerial view of Hyundai Heavy Industries Co., the world's largest shipyard, in Ulsan, 414 kilometers southeast of Seoul. On Feb. 12, 2019, the Korea Development Bank said Hyundai has been chosen as a candidate to buy its smaller local rival Daewoo Shipbuilding & Marine Engineering Co. (DSME). (Yonhap)
ksnam@yna.co.kr
(END)
-
Ateez realizes importance of direct interactions with fans during world tours
-
U.S. B-1B strategic bomber returns to S. Korea as N.K. fires missile
-
(URGENT) N. Korean leader Kim Jong-un calls for completing readiness for nuclear attack against enemies: KCNA
-
BTS member Jimin's single tops iTunes charts in 110 countries
-
TWICE's new album hits No. 2 on Billboard 200
-
Ateez realizes importance of direct interactions with fans during world tours
-
Defense ministry sets out to normalize military intelligence-sharing deal with Japan
-
(LEAD) S. Korea fully restores bilateral military information-sharing pact with Japan
-
(LEAD) Political divide intensifies in S. Korea over Yoon-Kishida summit
-
U.S. B-1B strategic bomber returns to S. Korea as N.K. fires missile
-
Zebra escapes from Seoul zoo
-
(LEAD) N. Korea tests 'underwater nuclear attack drone,' cruise missiles for nuclear warhead: KCNA
-
(LEAD) Zebra captured some 3 hours after escaping from Seoul zoo
-
Ateez realizes importance of direct interactions with fans during world tours
-
N. Korea says it conducted new underwater nuke weapon test, strategic cruise missile drill: KCNA