Shipbuilding Mega-Merger Blocked: European Commission Prohibits Hyundai Heavy Industries’ Takeover of DSME

The European Commission has rejected the proposed merger between South Korean shipbuilders Daewoo Shipbuilding & Marine Engineering (DSME) and Hyundai Heavy Industries Holdings (HHI), saying the combination would create a dominant position that reduces competition in the global market for LNG carriers.

The Commissions says the decision comes following an in-depth investigation of the proposed transaction. DSME and HHI are two of the three largest shipbuilders of in the LNG segment, and over the last five years European customers have accounted for almost 50% of all orders.

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