HHI takeover of DSME cleared, deal set to be signed next month

HHI takeover of DSME cleared, deal set to be signed next month

The path has now been cleared in South Korea for Hyundai Heavy Industries (HHI) to take over local rival Daewoo Shipbuilding & Marine Engineering (DSME). State-run Korea Development Bank (KDB), which has a majority stake in DSME, said today Samsung Heavy Industries (SHI) has no intention of entering the race to buy DSME, leaving HHI as the sole candidate to take over the yard.

HHI and KDB will sign an official deal in early March with the bank’s 56% stake thought to be worth KRW2trn ($1.78bn).

Combined HHI and DSME will be the world’s largest shipbuilder by some distance with a joint order backlog giving it a 21.2% global market share as of the end of last year.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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