Hyundai Heavy Industries Group said on July 2 it has officially started the process to earn approval from anti-trust regulators for its proposed takeover of Daewoo Shipbuilding and Marine Engineering.
The shipbuilder said it has submitted a request for formal approval from South Korea’s Fair Trade Commission and has decided to make similar requests to antitrust watchdogs in Japan, China, Kazakhstan and the European Union. The shipbuilder said it will submit additional bids to other countries.
In March, Hyundai Heavy signed a formal deal, worth an estimated 2 trillion won ($1.7 billion), with the state-run Korea Development Bank to buy the smaller local shipbuilder. The bank is the largest shareholder of Daewoo, with a controlling 55.7-percent stake in the company.
Winning regulatory approval from domestic and foreign corporate regulators has been regarded as a key hurdle facing HHI’s efforts to complete the merger with DSME, since the tie-up of the two major shipbuilders could reshape the global shipbuilding landscape with their dominant market position.
Korea’s FTC will review HHI’s deal for 30 days, though it can extend the review period to 90 days.
HHI said it has been discussing the matter with the EU regulators since April to prepare for approval of the merger and acquisition deal. The company said the review process by the EU regulators will take months.
By Ram Garikipati and newswires (email@example.com)