Hyundai Heavy Industries Submits Application for Merger with DSME to China
Hyundai Heavy Industries Group has filed an application for a merger with Daewoo Shipbuilding & Marine Engineering (DSME) with the State Administration for Market Regulation of China.
“Today, we submitted an application for an enterprise combination review through a local consultant in China,” said an official of Korea Shipbuilding and Offshore Engineering on July 22. The Chinese government will examine for up to 120 days whether Hyundai Heavy Industries Group’s acquisition of DSME will impede global competition.
Hyundai Heavy Industries Group has chosen the Korea Fair Trade Commission, the EU, Japan, China and Kazakhstan as reviewers of its merger with DSME. It filed an application for a corporate merger with the Korea Fair Trade Commission on July 1. The commission’s review period is up to 120 business days. The group is in pre-negotiations with the EU as it requires an applicant to undergo pre-screening before filing a review application.
Considering that the Chinese shipbuilding industry is pushing for a marriage between China State Shipping Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC), China’s two largest shipyards, the State Administration for Market Regulation of China is unlikely to oppose the merger between Hyundai Heavy Industries and DSME.
Source: Business Korea