The European Commission has prohibited the acquisition of Daewoo Shipbuilding & Marine Engineering (DSME) by Hyundai Heavy Industries Holdings (HHIH), noting that the merger between the two South Korean shipbuilders would have created a dominant position by the new merged company and reduced competition in the worldwide market for the construction of large liquefied gas (LNG) carriers (LLNGCs).

“They are both very strong players in the market for the construction of large vessels transporting liquefied natural gas – so-called LNG. These are highly sophisticated vessels transporting LNG at minus 162 degrees. Only a handful of shipbuilders around the world are able to build these vessels,” EU Commission Executive Vice-President for Competition Policy Margrethe Vestager said on January 13. The merger would have created a dominant position in the market for the construction of large LNG carriers. This would have led to less choice, higher prices and ultimately less innovation for European customers. The companies did not submit any formal remedies to offset the negative effects of the acquisition. As a result, the merger could not be approved,” she added.

https://www.neweurope.eu/article/eu-blocks-takeover-of-dsme-by-hyundai-heavy-industries/

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