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'EU Plans to Veto Merger of Hyundai Heavy Industries, Daewoo Shipbuilding'

Written: 2022-01-12 10:48:58Updated: 2022-01-12 16:05:18

'EU Plans to Veto Merger of Hyundai Heavy Industries, Daewoo Shipbuilding'

Photo : YONHAP News

European Union(EU) regulators are said to be planning to veto a merger between Hyundai Heavy Industries Group and Daewoo Shipbuilding and Marine Engineering, according to the Financial Times on Tuesday.

Quoting officials, the paper said that the EU’s antitrust authority is set to announce this week its intent to block the two-billion-dollar merger, calling it anti-competitive.

The EU apparently reached the decision out of concerns that the merger could negatively affect the construction of vessels carrying liquified natural gas(LNG) amid a sharp surge in energy prices in Europe.  

It is said to have requested remedies to the merger fearing the LNG ship market could be monopolized.

The European Commission began deliberating the merger in December 2019 but had put off the review three times due to the pandemic. It recently resumed talks which are set to run through next Thursday.  

Market observers say it is unprecedented for the EU to spend over two years reviewing a merger.

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