The European Commission announced it will resume its review of Hyundai Heavy Industries’ acquisition of Daewoo Shipbuilding & Marine Engineering, after temporarily suspending it amid the COVID-19 pandemic.
South Korean HHI, the world’s largest shipbuilder, revealed plans to acquire DSME, another major shipbuilder, in 2019. The EU launched an investigation on the deal in late 2019.
However, the EU suspended the investigation in early April, due to disruptions related to COVID-19.
The Commission namely warned in December that the deal to create a company with a 21% market share could result in higher prices.
Specifically, EU expressed concerns that the deal could adversely affect shipbuilding industry and reduce its global competition.
If the $1.8 billion deal run smoothly, the merged company would have a 21% market share. This could give it control of nearly half of the global shipbuilding market.
Now, the Commission expects a decision on the merger by early September.
