EU Hinders Mega-Merger Of South Korean Giants ‘HHI & DSME’
The European Union (EU) regulators are thought to be preparing to veto a merger between Daewoo Shipbuilding and Marine Engineering and Hyundai Heavy Industries Group per reports from the Financial Times.
Quoting authorities, the paper mentioned that this week, the EU’s antitrust authority is all prepared to announce its intent to block a two-billion-dollar merger as it considers the same to be anti-competitive.
The EU made such a decision out of concerns that this merger may even negatively impact the construction of ships transporting LNG amidst a steep rise in energy prices all over Europe.
It is said to have requested some remedies to the merger fearing that the LNG ship market may eventually be monopolized.
The European Commission started to deliberate the merger in 2019 December. However, the review had to be delayed thrice owing to the ongoing COVID-19 pandemic. It resumed conversations recently. The result of these discussions is set to run through the coming Thursday.
Market observers report that it is unexpected of the EU to spend more than two years to review a merger.