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June 4, 2020updated 09 Mar 2022 11:44am

EU antitrust regulators resume HHI-DSME merger probe

The EU antitrust regulators have resumed their probe into a $1.8bn merger of Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding & Marine Engineering (DSME).

The EU antitrust regulators have resumed their probe into a $1.8bn merger of Hyundai Heavy Industries (HHI) and Daewoo Shipbuilding & Marine Engineering (DSME).

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The regulator has also set a deadline of 3 December for reaching a decision.

The organisation halted the process on 1 April as it is waiting for information to be provided by the companies.

In December last year, the European Commission (EC) launched a detailed investigation into the merger of DSME and HHI.

It said that the merger of the two companies will together hold 21% of the entire market share and is expected to become the largest ship-maker in the world.

The in-depth review was launched after the completion of a primary review.

It was found that the other shipbuilders in the four markets, where the two companies together have a strong influence, will not be able to compete with the united entity.

While the merger will reduce the competition in the cargo shipbuilding market, it will also result in higher prices, fewer options and decreased incentives to innovate.

In February this year, Japan filed a petition with the World Trade Organisation (WTO) over the legitimacy of the merger.

In July last year, HHI requested the South Korean Fair Trade Commission (FTC) to grant permission for the proposed takeover of DSME.

In February last year, HHI agreed to acquire a controlling stake in its rival DSME from Korea Development Bank (KDB).

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Free Report
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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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