The merger between Hyundai Heavy Industries Group and Daewoo Shipbuilding and Marine Engineering will receive regulatory approval upon the receival of assurances that the competition on the market would not be affected.
According to local media, this means that HHI Group would have to transfer its LNG shipbuilding technology to the medium-sized shipbuilders.
What is more, at the beginning of this year, Hyundai noted that it expects to finalize the acquisition of its smaller rival by the end of the first half of 2021.
The proposed acquisition will see HHI take over DSME. Nevertheless, the process has to receive green lights from various regulatory authorities.
Currently, the EU is concerned that the transaction may remove DSME as an important competitive force in the markets of large containerships, oil tankers, LNG and LPG carriers.
What is more, at the end of January, Korea Shipbuilding & Offshore Engineering (KSOE), a shipbuilding holding company of Hyundai Heavy Industries Group, extended the deadline for the acquisition during regulatory delays.
The deadline has been extended from September 2020 to June 2021.