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January 12, 2022

EU to block shipbuilding merger between Daewoo and Hyundai

An investigation into the proposed merger was launched in December 2019.

European Union (EU) officials are reportedly preparing to block a merger valued at $2bn between South Korean shipbuilders Daewoo Shipbuilding & Marine Engineering (DSME) and Hyundai Heavy Industries (HHI).

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This is the first time since 2019 that Brussels has decided to turn down a corporate merger, reported the Financial Times (FT).

The proposed partnership between DSEM and HHI was also first announced in 2019, at which time Brussels demanded that the companies provide solutions to prevent worries about preserving competition, the report added.

According to the newspaper, the proposed merger between the South Korean companies, which are two of the world’s biggest shipbuilders, will be stopped due to being anti-competitive.

The final decision is likely to be announced this week, three people with knowledge of the matter said.

The European Commission (EC) declined to comment.

Regulators in Singapore, China and Kazakhstan have approved the merger.

However, it needs approval from the EU, South Korea and Japan for completion.

The two South Korean shipbuilders are known in the market for manufacturing ships that carry super-chilled liquefied natural gas (LNG).

An EU official said blocking the merger is expected to help protect European consumers from paying higher prices for LNG.

The EC launched an in-depth investigation into the proposed DSME and HHI merger in December 2019 under the EU Merger Regulation.

According to the Commission, the merger is expected to reduce competition in different cargo shipbuilding markets across the globe.

In December 2020, the Chinese antitrust authority sanctioned the merger between DSME and Korea Shipbuilding and Offshore Engineering (KSOE), a shipbuilding unit of HHI.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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