The state antitrust regulator has decided to give a conditional authorization for shipping company HD Korea Shipbuilding & Offshore Engineering's acquisition of a controlling stake in STX Heavy Industries.

According to the decision by the Fair Trade Commission(FTC) on Monday, HD Korea Shipbuilding & Offshore Engineering will acquire the largest 35-point-05-percent stake in STX Heavy Industries.

To ensure fair competition, the FTC's corrective measures will ban refusal to supply crankshafts, a key vessel engine component, in addition to maintaining a minimum volume of supplies and limiting price hikes of marine engine parts for three years.

In July 2023, the shipping company signed a contract with a private equity firm to buy the shares in STX Heavy, a major marine engines and parts manufacturer.

The latest acquisition has allowed HD Korea Shipbuilding & Offshore Engineering to become the leading firm in both the engine parts and vessel engine markets, taking up around 80 and 70 percent, respectively, and to consolidate the vertical integration structure.