Hyundai, Daewoo tie-up gets EU antitrust veto (updated)

HD Hyundai

13/01/2022 12:14

(Adds EU antitrust chief quote, details)
    By Foo Yun Chee
    BRUSSELS, Jan 13 (Reuters) - Hyundai Heavy Industries'
 267250.KS  proposed takeover of rival Daewoo Shipbuilding &
Marine Engineering Co Ltd  042660.KS  to create the world's
biggest shipbuilder was hit with an EU veto on Thursday on
concerns that the deal would hurt competition.
    Hyundai, one of the largest shipbuilders in the world,
announced the deal in 2019 in part to tackle overcapacity in the
sector. It sought EU antitrust approval for the takeover in
November 2019.
    The European Commission said the deal would create the
world's largest shipbuilder with a combined market share of at
least 60%, leaving few alternative suppliers for customers.
    The EU competition enforcer said the tie-up would reduce 
competition in the global market for the construction of large
liquefied gas (LNG) carriers.
    It also said the companies did not make a formal offer of
remedies to address competition concerns. 
    Reuters reported on Dec. 10 that the deal would be blocked
by the EU executive.  urn:newsml:reuters.com:*:nL1N2SV1HA
    "Given that no remedies were submitted, the merger would
have led to fewer suppliers and higher prices for large vessels
transporting LNG. This is why we prohibited the merger," EU
antitrust chief Margrethe Vestager said in a statement.

 (Reporting by Foo Yun Chee; editing by Jason Neely)
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