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EU: Hyundai’s US$1.8B deal with Daewoo hits antitrust hurdle

By  |  December 17, 2019

World No. 1 shipbuilding group Hyundai Heavy Industries Holdings’ US$1.8 billion merger with rival Daewoo could inflate prices, EU antitrust regulators warned on Tuesday, December 17, as they opened a full-scale investigation.

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    According to Reuters, Hyundai is seeking to reinforce its position as the world’s biggest shipbuilder partly in response to overcapacity in the industry. The merged company would have a 21% market share, 

    The European Commission stated it had serious concerns about the deal, confirming a Reuters story on December 9. 

    “Cargo shipbuilding is an important industry for the European Union,” Margrethe Vestager, vice president of the European Commission, said in a statement. 

    Much of the EU’s internal and extend freight trade went by sea and European shipping companies regularly purchased vessels from Hyundai and Daewoo.

    Full Content: Reuters

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