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December 11, 2019

EU watchdog is set to investigate HHI merger with Daewoo

South Korean shipbuilder Hyundai Heavy Industries’ (HHI) $1.8bn merger with Daewoo Shipbuilding & Marine Engineering (DSME) is set to be probed by the EU antitrust watchdog.

South Korean shipbuilder Hyundai Heavy Industries’ (HHI) $1.8bn merger with Daewoo Shipbuilding & Marine Engineering (DSME) is set to be probed by the EU antitrust watchdog.

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The European antitrust authorities have expressed serious concerns over the deal.

The European Commission (EC) will initiate the probe into the deal next week after completion of a primary review, which is scheduled to conclude on 17 December.

It is believed that a full probe will take up to five months to conduct.

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

Following the completion of the deal, HHI plans to set up a joint shipbuilding venture with KDB, which holds the largest share in DSME.

With a 21% market share, the combined company is expected to become the largest ship-maker in the world.

In July, HHI requested the South Korean Fair Trade Commission (FTC) to grant permission for the proposed takeover of Daewoo Shipbuilding and Marine Engineering (DSME).

HHI has filed similar applications with antitrust authorities in Japan, China and Singapore, with additional plans in place to request permission from the regulators of other countries.

Kazakhstan has already granted permission for the proposed merger. Recently, Hyundai said it is collaborating with Singapore’s regulators to address their concerns.

A Hyundai Heavy Industries spokesman said: “We will do our best to get approval without any problems.”

Earlier, Hyundai has said that after the merger completion both companies will separately compete in the shipping market.

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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:
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  • 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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