The head of the German antitrust regulator has said a key issue in deciding the fate of the acquisition of Daewoo Shipbuilding & Marine Engineering by Hyundai Heavy Industries is whether the deal restricts competition.
Andreas Mundt, president of Germany’s Federal Cartel Office, made the comments in a meeting with South Korean reporters in Berlin last week, saying that mergers and acquisitions are not a fundamental solution to overcoming challenges.
HHI, the world’s largest shipbuilder by sales, signed a formal deal with Korea’s state-run Korea Development Bank earlier this month to buy DSME, the world’s second-biggest shipbuilder by sales.
Ricardo Cardoso, spokesperson for competition at the European Commission, told Korean reporters in Brussels that continuation of competition and the deal’s implications for consumers are key factors in whether to endorse the acquisition.
HHI’s acquisition of DSME is subject to approval in Korea as well as by the antitrust regulators of countries that may be affected by the takeover.
The deal, if approved, would create the world’s largest shipbuilding group.
Kim Sang-jo, head of Korea’s Fair Trade Commission, has said that the commission will make a reasonable decision on the acquisition in a way that can serve as a reference for antitrust regulators of other countries.
By Ram Garikipati and newswires (email@example.com)