South Korea’s two largest shipbuilders are pushing ahead with plans for a merger even as trade tensions with Japan raise concerns that politics could throw a wrench in the 1.8 trillion won (US$1.5 billion) deal.
The proposed merger is also raising concern among Japanese shipbuilders of “mega shipyards” creating greater competitive pressure in an industry already facing headwinds.
Hyundai Heavy Industries Group, the world’s largest shipbuilder, aims to acquire compatriot Daewoo Shipbuilding & Marine Engineering in a stock swap deal. The acquisition, which will give Hyundai Heavy an even bigger global presence is subject to approval by various antitrust bodies, including those in China, the EU and Japan.
Full Content: Asia Nikkei
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