KSOE quits efforts to acquire DSME, FTC says
전체 맥락을 이해하기 위해서는 본문 보기를 권장합니다.
"Due to the European Commission's veto, the company can't continue with the planned merger," according to an FTC statement. "KSOE submitted documents to withdraw the merger, and we will stop reviewing the acquisition as soon as we confirm the contract has been terminated."
"The government continues to see that a private company owner is needed to fundamentally normalize DSME," the statement said. "With Korea Development Bank, we will map out plans to enhance competitiveness of DSME as soon as possible."
이 글자크기로 변경됩니다.
(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.
Korea Shipbuilding & Offshore Engineering (KSOE) has ended it efforts to acquire Daewoo Shipbuilding & Marine Engineering (DSME), following the European Commission's veto of the deal.
The company submitted a withdrawal letter on Jan, 14 to the Fair Trade Commission, the regulator said, formally ending the takeover bid.
"Due to the European Commission's veto, the company can't continue with the planned merger," according to an FTC statement. "KSOE submitted documents to withdraw the merger, and we will stop reviewing the acquisition as soon as we confirm the contract has been terminated."
The proposed acquisition was rejected by the European Commission on Jan. 13, citing a possible dominant position for HHI Holdings in the liquefied natural gas (LNG) carrier market.
KSOE is 30.95 percent owned by Hyundai Heavy Industries (HHI) Holdings.
The commission estimated the combined market share of HHI Holdings and DSME in LNG carriers to be about 70 percent.
Following the decision, KSOE announced that it will "consider all options it can, including an appeal," but the company has halted its plans.
Daewoo Heavy Industries split its businesses into two — putting shipbuilding into DSME and machinery into Daewoo Heavy Industries & Machinery — following the bankruptcy of Daewoo Corp. in 1999. The machinery business was successfully sold and eventually became Hyundai Doosan Infracore. DSME failed to find a new owner for decades.
"Since 2014, when the shipbuilding industry wasn't in good shape, companies suffered from low contract prices coming from excessive competition," said a spokesperson from a shipbuilding company. "The three big shipbuilders and the government decided that the current 'Big 3' format isn't good for creating competitiveness for the industry, and having two big players would be better."
Korea as a country often bags the most orders, but individual companies faced harsh competition due to businesses centered around LNG carriers and having similar technologies. The merger was expected to ease a three-way rivalry between HHI Holdings, DSME and Samsung Heavy Industries.
Although the merger was put to an end, DSME will do well in the short term due to shipbuilding orders it received during the pandemic.
"We are continuing to get orders, and it is not likely for us to undergo a liquidity crisis within the next year or two," said a spokesperson for DSME.
The company had a debt ratio of 297.3 percent as of the third quarter last year.
The Ministry of Trade, Industry and Energy released a statement Jan. 14 saying that it is disappointed about the decision, but will continue to look for a new owner for DSME.
"Considering China, Singapore, Kazakhstan approved the acquisition, we are disappointed about the European Commission's decision to veto it," the statement read.
Creditors have extended DSME guarantees and other financial support until the end of 2022, which the ministry says will help the company continue to receive and complete shipbuilding orders.
"The government continues to see that a private company owner is needed to fundamentally normalize DSME," the statement said. "With Korea Development Bank, we will map out plans to enhance competitiveness of DSME as soon as possible."
The bank owns 55.7 percent of DSME.
BY BAEK MIN-JEONG, CHO HYUN-SUK, LEE TAE-HEE [lee.taehee2@joongang.co.kr]
Copyright © 코리아중앙데일리. 무단전재 및 재배포 금지.
- BTS's V's 'Virkin' bag sells out in seconds leaving many ARMY disappointed
- Arrivals face more hoops as Omicron spreads
- SHINee's Taemin transferred to serve as public service worker
- Korea's beloved winter snack finds itself in icy waters
- Actor Kim Mi-soo's sudden death reported by international news outlets
- Mirror, mirror on the wall, does being fair mean you have it all?
- First of six workers detected among debris in Gwangju apartment collapse
- Young people’s deaths after Pfizer vaccines are new worry
- North's fighter jets hide in secret air bases in mountains
- EU vetoes Hyundai Heavy Industries-DSME merger