Hyundai Heavy Industries (HHI) has confirmed it has been in discussions to buy a majority stake in Daewoo Shipbuilding & Marine Engineering (DSME) from the state-run Korea Development Bank.
DSME has been under state control for a number of years, hit hard by an accounting scandal and a downfall in orders.
Combined HHI and DSME would be the largest shipbuilder in the world by some distance with a joint orderbook of around 180 ships.