(CercleFinance.com) – The European Commission has prohibited, under the EU Merger Regulation, the acquisition of Daewoo Shipbuilding & Marine Engineering (DSME) by Hyundai Heavy Industries Holdings (HHIH).
The merger between the two South Korean shipbuilders would have created a dominant position for the newly merged company and reduced competition in the global market for building large liquefied gas (LNG) carriers.
Consequently, the Commission has prohibited the proposed transaction. Ms. Margrethe Vestager, Executive Vice President, Competition Policy, said: ‘Given that no remedy was presented, the merger would have resulted in a decrease in the number of suppliers and an increase in price of large vessels carrying LNG. That’s why we banned the merger’.
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