China’s anti-trust authority has given the greenlight to the merger between two major South Korean shipbuilders Hyundai Heavy Industries Holdings (HHI) and Daewoo Shipbuilding and Marine Engineering (DSME).
China’s State Administration for Market Regulation has reached a consensus that the potential merger will not hurt fair market competition and issued unconditional approval for the merger.
It is the third approval the yards have received after anti-trust agencies in Kazakhstan and Singapore gave the go ahead for the takeover.
HHI entered into a deal to purchase a 55.72% stake in DSME last year. The merger would create one of the world’s largest shipbuilders.
Currently the merger is still under review by the antitrust regulator of European Union.
In February, the Japanese government filed a petition at the World Trade Organisation questioning the legitimacy of the merger.
CSSC and CSIC, the two major state-run shipbuilding conglomerates in China, also completed a merger, creating China Shipbuilding Group last year.