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| Published：2020.12.29 News Sources：Qingdao Gute Ship Supplies Co., Ltd. Views： | |||
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China approved unconditionally! South Korea's two major shipping companies merged to achieve another victory
On December 28, South Korea Shipbuilding & Marine, the secondary holding company of Hyundai Heavy Industries Group in charge of shipbuilding business, stated that it had received an "unconditional approval" notification from the Chinese antitrust regulatory agency regarding the company's business merger with Daewoo Shipbuilding. This is the third country after Kazakhstan and Singapore to approve the merger of the two major shipbuilding companies in South Korea. The State Administration for Market Regulation (SAMR) of China stated in the notice: "According to the results of the discussion in Article 26 of the Chinese Anti-Monopoly Law, there are no restrictions on market competition caused by business mergers between the two companies." Korea Shipbuilding & Marine Corporation applied for a merger review with China in July last year. After three stages of review, it was finally approved unconditionally after 1 year and 5 months. The South Korean industry had previously worried that China, as South Korea’s largest competitor in the global shipbuilding market, would find it difficult to obtain the approval of China’s anti-monopoly regulators for the merger of South Korea’s two major shipbuilding companies. Therefore, after the approval of China this time, the South Korean industry believes that the approval of the Chinese government is of great significance. According to requirements, the merger of Hyundai Heavy Industries Group and Daewoo Shipbuilding must pass anti-monopoly review in six countries, including South Korea, the European Union, Japan, China, Kazakhstan, and Singapore. As long as one of the countries objected, Hyundai Heavy Industries' plan to acquire Daewoo Shipbuilding would actually fail. Up to now, three countries have approved the merger of South Korea's two major shipping companies, including Kazakhstan in October last year and Singapore in August this year, as well as the latest approval of China. Antitrust regulators in the European Union, South Korea and Japan are under review. South Korean Shipbuilding and Marine said that thanks to the company's active explanation of market monopoly and other issues, it finally obtained the result of "unconditional approval" by the Chinese anti-monopoly regulatory agency. Kazakhstan, Singapore and China have successively made unconditional approval decisions on the merger of the two major shipbuilding companies in South Korea, which will also have a positive impact on other countries that are still reviewing the merger. The merger of the two major shipping companies in South Korea was originally planned to be completed within this year. However, affected by the epidemic, the European Union has suspended antitrust review of the merger of Hyundai Heavy Industries and Daewoo Shipbuilding three times this year. In October of this year, South Korea Shipbuilding & Marine has made some concessions to the European Commission, hoping that the EU will complete the approval as soon as possible. The South Korean industry predicts that the EU may make a decision early next year, and if the EU approves it, Japan and South Korea are likely to follow suit. The EU's attitude is so important because the EU is home to the world's major shipowners. Greece, Norway, Denmark and Switzerland all have global shipping companies. The EU competition bill is also more complicated than other countries. It is reported that the EU review will focus on whether the merger will cause damage to market competition in the field of LNG ship construction. Once merged, the two companies will occupy up to 60% of the LNG ship market, far higher than their 21% share of the entire shipbuilding market. An official from South Korea Shipbuilding and Marine said: "In the future, we will carefully explain relevant matters in accordance with the review schedule and procedures of the antitrust regulatory agencies of the remaining three countries, including the European Union, South Korea, and Japan, and do our best to successfully complete the merger review. " According to the plan, after completing the review in these countries and regions, Korea Shipbuilding & Marine and Korea Industrial Bank (KDB) will exchange their mutual shares in Korea Shipbuilding & Marine and Daewoo Shipbuilding to complete the business merger process. In connection with this, Hyundai Heavy Industries Group will materially split the existing Hyundai Heavy Industries into Korea Shipbuilding & Marine (existing legal person) and Hyundai Heavy Industries (new managers). |
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