Hyundai Heavy Industries has filed a legal challenge to the decision taken by the European Commission in January to oppose the takeover of compatriot builder, Daewoo Shipbuilding & Marine Engineering.
The commission had blocked the move on the grounds that the merger could give the enlarged entity too great control over the construction of LNG carriers, something subsequently that has become more important as Europe looks to wean itself off piped in supplies of Russian gas.
Irrespective of the legal challenge, Hyundai Heavy officials have let it be known that they intend to focus on new business plans and there is no intention to rebid for DSME. DSME’s main creditor, the Korea Development Bank, is now looking at finding new buyers for the yard.
There has been considerable anger in Korean shipbuilding circles that the EU blocked the HHI merger, while allowing China’s two largest state-run shipbuilding groups to come together back in 2019.