![](https://www.pymnts.com/wp-content/uploads/2021/06/shutterstock_784765822-1-e1585089336846.jpg)
The South Korean news agency Yonhap has reported that the EU’s antitrust review of the proposed merger of Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering continues to be on hold after more than a year of delays and 18 months since the EU stated the proposed transaction required an in-depth investigation.
The news of the continued delays comes as the companies face their latest deadline by the end of June to complete the merger.
The merger between Korea’s two large shipbuilding was first announced in March 2019 with terms of the transaction set at the end of the year. At the time of the announcement, the companies said that six regulatory bodies would need to review the proposed transaction which would create the world’s largest shipbuilder representing as much as a fifth of the market. Now it appears the EU antitrust review on hold again.
Kazakhstan was the first to approve the merger, followed by Singapore and later China. In addition to the EU, both Japan and South Korea need to approve the merger, but sources have believed that those countries were waiting for the approval from the Europeans.
The European Commission announced in late 2019 that it had opened an in-depth investigation based on its concerns that the merger may reduce competition in various global cargo shipbuilding markets. Based on delays gathering information, in part due to limitations as a result of the coronavirus, the EU has on several occasions suspended the review process. Originally expected to be completed by September 2020, Yonhap is reporting that the review has not progressed since the EU initiated the last pause in July 2020.
To aid in the regulatory review, the Hyundai Group undertook several steps to restructure the operations and management of the companies. Korea Shipbuilding & Offshore Engineering Co. was set up as the holding company that would oversee strategy and acquisitions while Hyundai Heavy Industries would focus on the construction of ships at its three shipyards, Hyundai Heavy Industries, Hyundai Mipo Dockyard, and Hyundai Samho Heavy Industries. DSME would remind a separate operating company.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Geradin Partners Expands Paris Office with Key Hire
Aug 30, 2024 by
CPI
Judge Accuses Google of ‘Clear Abuse’ in Antitrust Case Over Deleted Employee Chats
Aug 29, 2024 by
CPI
Hong Kong Cleaning Company Employee Charged in Historic Antitrust Investigation Case
Aug 29, 2024 by
CPI
Inside the Yelp Suit: Allegations of Google’s Abuse of Search Power
Aug 29, 2024 by
CPI
AI Safety Bill Clears Hurdle in California, Heads to Governor’s Desk
Aug 29, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich