South Korea’s shipbuilding giant Hyundai Heavy Industries Holdings (HHIH) expects to complete the acquisition of smaller rival Daewoo Shipbuilding & Marine Engineering (DSME) by the end of the first half of 2021.
This was revealed by Kwon Oh-gap , Chairman of HHIH, in his New Year’s message on 4 January. According to him, although the deal faced some delays, it will be finalized within this quarter.
Announced last year, the proposed tie-up will see HHI take over Geoje-based DSME from Korean state lender Korea Development Bank (KDB), the majority shareholder owning a 55.7 percent stake in the company.
In order to proceed with the planned acquisition, Hyundai Heavy Industries Group reorganized into two entities, Korea Shipbuilding & Offshore Engineering Co. (KSOE), a shipbuilding arm of the group, and reshuffled Hyundai Heavy Industries.
In the coming months, the $1.8 billion merger still needs to secure approvals from South Korea, Japan and the European Union .
In late December 2020, China’s State Administration for Market Regulation (SAMR) approved the proposed merger, explaining that the deal would not violate antitrust laws or endanger competition in the country.
Apart from China, the deal has so far gained approvals from Singapore and Kazakhstan .