Hyundai Heavy Industries Group (HHI), has submitted an application to the European Union (EU) for approval for its proposed takeover of local rival Daewoo Shipbuilding and Marine Engineering (DSME).
According to the Yonhap News Agency, HHI said its request will be reviewed by anti-trust authorities at the European Commission, with the result expected to come out next year. HHI has been taking prerequisite steps since April to apply for the EU's mergers and acquisitions approval.
In March, Hyundai Heavy signed a formal deal, worth an estimated $1.7Bn to buy its smaller local rival from the state-run Korea Development Bank. The policy lender is the largest shareholder of Daewoo Shipbuilding, with a controlling 55.7% stake.
Winning regulatory approval from domestic and foreign corporate regulators is a key hurdle facing Hyundai Heavy's bid to complete the acquisition of Daewoo Shipbuilding, since the tie-up of the two major shipyards could reshape the global shipbuilding landscape with their dominant market position.
In addition to the EU, Hyundai Heavy's acquisition deal is currently being reviewed by antitrust regulators in South Korea, Japan, China and Singapore. Last month, HHI received approval from Kazakhstan. An official of HHI Group said, “The transaction is subject to customary closing conditions, including the receipt of regulatory approval from relevant competition authorities. We are making utmost efforts to win the approval of the transaction in line with their assessment schedules and procedures,”