The European Commission has rejected the proposed merger between Daewoo Shipbuilding & Marine Engineering and rival Hyundai Heavy Industries.
The reasons are explained in a press release issued a short while ago. The merger between the two South Korean shipbuilders would have led to them dominating the large Liquefied Natural Gas carrier construction market at global level.
The press release also specifies that the two shipbuilders did not formally offer any solutions to address the Commission’s concerns.
According to Brussels-based head of competition Margrethe Vestager, the merger would have reduced the number of suppliers in a market where there is strong demand from European customers, contributing to higher prices.
The European Commission launched its enquiry in 2019, suspending it three times due to the Pandemic. The investigation resumed late last year.
Translation by Giles Foster