The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    INTERVIEWAhn Hyo-seop wanted to share dedicated love with 'A Time Called You'

  • 3

    SHINee launches first Japan tour in 5 years

  • 5

    S. Korea wins 1st table tennis gold in 21 yrs

  • 7

    Heavy traffic jams mostly eased on 5th day of holiday

  • 9

    LA-based photographer captures Koreatown unfazed by pandemic

  • 11

    INTERVIEWIt is premature to revise ROK-US mutual defense treaty: veterans' group head

  • 13

    Public transit fares to increase in Seoul and Busan this week

  • 15

    National Assembly speeds up efforts to outlaw dog meat consumption in Korea

  • 17

    Ruling party vows to investigate China's alleged influence operations

  • 19

    Internet-only banks outperform legacy lenders in labor productivity

  • 2

    Korea's Coast Guard apprehends 22 Chinese after illegal entry attempt

  • 4

    Distraught roller skater apologizes for costly premature celebration

  • 6

    Korea makes last-ditch bid to host World Expo 2030 in Busan

  • 8

    Consumers to face higher prices for daily necessities after Chuseok

  • 10

    Samsung chief visits Middle East to explore new businesses

  • 12

    No regrets for roller skaters after taking silver in relay

  • 14

    Korea picks up 2 medals in table tennis as gold drought continues

  • 16

    'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office

  • 18

    Shin-Hanul No. 2 nuclear reactor begins testing for full operation next year

  • 20

    4 injured in rockfall at tourist attraction on eastern island of Ulleung

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Wed, October 4, 2023 | 12:07
Companies
EU vetoes Korean shipbuilding merger between Hyundai and Daewoo
Posted : 2022-01-13 21:21
Updated : 2022-01-14 08:47
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link

Hyundai Heavy Industries shipyard is seen in Ulsan Metropolitan City. Courtesy of Hyundai Heavy Industries
Hyundai Heavy Industries shipyard is seen in Ulsan Metropolitan City. Courtesy of Hyundai Heavy Industries

The European Union antitrust regulator on Thursday vetoed Hyundai Heavy Industries Group's proposed acquisition of its smaller rival Daewoo Shipbuilding Marine Engineering Co., citing monopoly issues.


The European Commission announced its decision to block the merger of the South Korean shipbuilders, arguing the tie-up could create a monopoly in the liquefied natural gas (LNG) carrier market amid rising energy prices.

"The merger would have created a dominant position by the new merged company and reduced competition in the worldwide market for the construction of large LNG carriers," the Commission said in a statement.

Hyundai Heavy did not formally offer remedies to address the Commission's concerns that the merger would have led to fewer suppliers and higher prices for LNG ships, the statement said.

If merged, two shipbuilders' combined market share in the LNG ship market would rise to at least 60 percent, the EU regulator said.

Hyundai Heavy Industries Holdings Co. (HHIH) called the commission's conclusion unreasonable and disappointing.

"The Commission's use of the market share as evaluation criteria has no probative value as the market share itself is not a proper indicator of market power in the shipbuilding industry," HHIH said in a statement.

LNG ships are the only sector that the EU took issue with in terms of dominant position, HHIH said.

Hyundai Heavy had expected unconditional European Commission clearance for the deal as was the case in Singapore, China and Kazakhstan.

The Singaporean regulator said that the shipbuilding market is heavily reliant on tenders and is essentially a bidding market. In bidding markets, having high market share may not confer market power as market share can be easily lost in the next bidding round, the statement said.

The existence of at least one credible alternative to the merged entity may be enough to constrain their ability to exert market power following the proposed merger. There are close competitors, such as Samsung Heavy Industries Co., Hudong Zhonghua Shipbuilding Co., and Mitsubishi Heavy Industries, Ltd., it said.

After reviewing the EU's final decision, HHIH said it will pursue possible measures, including an appeal to the General Court of the European Union.

Daewoo Shipbuilding was not immediately available for comment.

Hyundai Heavy announced the deal in 2019, and the EU regulator postponed the review of the acquisition three times in the past two years due to the extended COVID-19 pandemic.

In March 2019, Hyundai Heavy's main creditor Korea Development Bank agreed to provide the 56 percent stake it holds in Daewoo Shipbuilding to Hyundai Heavy in exchange for a stake worth 1.25 trillion won (US$1 billion) in Korea Shipbuilding Offshore Engineering Co. (KSOE).

HHIH, the holding company of Hyundai Heavy Industries Group, holds a 36 percent stake in KSOE. KSOE is the group's subholding company and has three affiliates -- Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co. -- under its wing.

Under the initial agreement, Hyundai Heavy was planning to raise 1.25 trillion won through the sale of Daewoo Shipbuilding shares to pay back Daewoo's debts after acquisition.

An EU veto is the first since the EU regulator blocked the merger between Germany's steelmaker Thyssenkrupp AG and India's Tata Steel Ltd. in 2019 due to the same anti-competition worries.

South Korea has the world's three biggest shipbuilders by orders -- Hyundai Heavy, Samsung Heavy Industries Co. and Daewoo Shipbuilding. (Yonhap)

 
wooribank
LG
Top 10 Stories
1Public transit fares to increase in Seoul and Busan this week Public transit fares to increase in Seoul and Busan this week
2Ruling party vows to investigate China's alleged influence operations Ruling party vows to investigate China's alleged influence operations
3Genesis GV80 Coupe looks to compete with Mercedes-Benz, BMW Genesis GV80 Coupe looks to compete with Mercedes-Benz, BMW
4Korean steelmakers on alert over initiation of EU carbon border tariff Korean steelmakers on alert over initiation of EU carbon border tariff
530 out of 74 major financial companies lack female board member30 out of 74 major financial companies lack female board member
6Korean shipbuilders seek lead over Chinese rivals in selling LNG carriers to Qatar Korean shipbuilders seek lead over Chinese rivals in selling LNG carriers to Qatar
7Hyundai, Kia to extend earnings rally on strengthening dollar, solid sales Hyundai, Kia to extend earnings rally on strengthening dollar, solid sales
8Lawmakers want chairmen of financial firms held accountable over misconduct Lawmakers want chairmen of financial firms held accountable over misconduct
9Dong-A Socio Group's honorary chairman passes away at 96 Dong-A Socio Group's honorary chairman passes away at 96
10Returning home from Chuseok holiday Returning home from Chuseok holiday
Top 5 Entertainment News
1TREASURE takes flak for excluding Dokdo from its Japan tour map TREASURE takes flak for excluding Dokdo from its Japan tour map
2Two artists' windows to light and serenityTwo artists' windows to light and serenity
3Crime thriller, romance series set to roll out in October Crime thriller, romance series set to roll out in October
4[INTERVIEW] Ahn Hyo-seop wanted to share dedicated love with 'A Time Called You' INTERVIEWAhn Hyo-seop wanted to share dedicated love with 'A Time Called You'
5'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office 'Dr. Cheon and Lost Talisman' tops Chuseok holiday box office
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group