Fair Trade Commission Likely to Conclude Hyundai Heavy Industries and Daewoo Shipbuilding Merger Review in Q1 After Delay

Domestic Merger Review Proceeding Independently from the EU

[Image source=Yonhap News]

[Asia Economy Reporter Moon Chaeseok] The Fair Trade Commission's review of the merger and acquisition (M&A) between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering has been delayed beyond the original schedule, and the results are expected to be announced no earlier than the first quarter of this year.

On the 3rd, a Fair Trade Commission official stated, "The corporate merger between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering requires further examination due to changes in the industry situation caused by the COVID-19 pandemic, so it will take several months to reach a final conclusion."

Initially, the Fair Trade Commission aimed to complete the review last year.

Chairman Cho commented on the Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering merger case on the 28th of last month, saying, "There have been significant market fluctuations after COVID-19, and many new orders have been received, so additional analysis is necessary. Although it is taking a bit more time, we will strive to handle it promptly."

The Fair Trade Commission is currently reviewing the shipbuilding industry's outlook and supply-demand fluctuations after COVID-19. However, since it takes time to obtain reliable data for analysis, it is considered difficult to reach a conclusion within one to two months.

Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering have applied for corporate merger reviews with competition authorities in six countries: South Korea, the European Union (EU), Japan, China, Kazakhstan, and Singapore.

China concluded last month with an "unconditional approval." Previously, Kazakhstan approved the merger in October 2019, and Singapore did so in August last year.

Among the remaining jurisdictions, the EU's approval is attracting the most attention, as it has postponed its review three times citing COVID-19 and other reasons.

The Fair Trade Commission stated that it is continuing its own domestic corporate merger review regarding the impact within Korea, independently of the EU's review results.

This content was produced with the assistance of AI translation services.