EU Prohibits Hyundai Heavy Group and Daewoo Shipbuilding Merger... "Hinders Market Competition" (Update)

EU "Concerns Over LNG Carrier Market Monopoly"
Hyundai Heavy Industries Group "Irrational Decision... Will Prepare Countermeasures"

[Asia Economy Reporter Jang Sehee] The European Union (EU) has blocked the merger and acquisition (M&A) of Korea Shipbuilding & Offshore Engineering, the shipbuilding holding company of Hyundai Heavy Industries Group, and Daewoo Shipbuilding & Marine Engineering. The concern is that the merger could lead to a monopoly in the liquefied natural gas (LNG) carrier market.

According to the shipbuilding industry, the EU Commission announced on the 13th (local time) that it would not approve the corporate merger between Korea Shipbuilding & Offshore Engineering and Daewoo Shipbuilding & Marine Engineering. The EU cited the reason for disapproval as the merger creating a dominant position in the LNG carrier market, which would hinder competition.

This marks the first time in two years and two months since the corporate merger review began in December 2019. As a result, the M&A between Korea Shipbuilding & Offshore Engineering and Daewoo Shipbuilding & Marine Engineering, which had been under discussion for three years, has ultimately failed.

Meanwhile, Hyundai Heavy Industries Group plans to prepare countermeasures going forward. Regarding this, Hyundai Heavy Industries stated, "The EU Commission's decision is unreasonable and regrettable," adding, "After carefully reviewing the final decision document, we plan to comprehensively prepare possible responses, including filing for remedies through the EU courts."

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