The long awaited HHI-DSME merger has been halted after EU antitrust regulators commenced their investigation in late 2019, waiting for both shipbuilding companies to provide the information missing.
Specifically, Reuters received an email statement according to which “Once the missing information is supplied by the parties, the clock is re-started and the deadline for the Commission’s decision is adjusted accordingly.”
The delay on information may be linked to the COVID-19 pandemic, which has resulted to delayed responding to requests for information, something that the EU is keeping in mind.
The Commission warned in December that the deal to create a company with a 21% market share could result in higher prices.
Overall, when the merger was announced, EU expressed its concerns as it may bring negative impacts in the cargo shipbuilding industry and reduce its global competition. However, if the $1.8 billion deal run smoothly, the merged company would have a 21% market share, expecting to control nearly half of the global shipbuilding market.
