South Korean shipbuilder Hyundai Heavy Industries’ proposed acquisition of rival Daewoo Shipbuilding & Marine Engineering is set for an EU antitrust veto after the companies declined to offer remedies to allay competition concerns, reported Reuters.
Hyundai, one of the largest shipbuilders in the world and which had announced the deal in 2019 in part due to overcapacity in the sector, said on Friday it expected unconditional European Commission clearance for the deal.
That is unlikely after an informal offer of remedies, which included the sale of part of a shipyard, fell short while a formal proposal was never put on the table, the people said.
The Commission is concerned that the deal would create two large players from the current three.
Hyundai said it expected the EU competition watchdog to reach the same conclusions as regulators in Singapore, China and Kazakhstan which have already given the green light.
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