April 24, 2024

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Hyundai Heavy Industries, the world’s largest shipyard by sales, is set to buy its smaller local rival Daewoo Shipbuilding & Marine Engineering, the state-run Korea Development Bank said on Feb. 12.

KDB said Samsung Heavy Industries has stated its intention not to join the race to take over DSME.

HHI and KDB will sign an official deal in early March.

Last month, the two signed a temporary deal.

KDB is DSME’s main creditor, with a 55.7 percent stake in the company. It said earlier it would contact Samsung Heavy to see if it is interested in DSME.

If the takeover, estimated at over 2 trillion won (US$1.78 billion), goes ahead, the Korean shipbuilding industry is expected to be dominated by two major shipbuilders – HHI and Samsung Heavy.

By Ram Garikipati and newswires (ram@heraldcorp.com)