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Hyundai in talks with EU over delayed Daewoo deal

By Caoimhe Toman

Date: Wednesday 23 Sep 2020

Hyundai in talks with EU over delayed Daewoo deal

(Sharecast News) - Hyundai Heavy Industries Holdings are in talks with the European Union antitrust regulators over its bid for Daewoo, reported Reuters on Wednesday.
The talks regard concessions to allay competition concerns over the proposed $1.8bn deal.

Hyundai in January announced the deal to create the world's biggest shipbuilder with a 21% market share, in part a response to over-capacity in the industry.

The European Commission has been investigating the proposal since last December after concerns arose that the takeover could raise prices and reduce competition in the cargo shipbuilding business.

Back in December, Hyundai pointed out to EU regulators the competitive threat resulting from the merger between China Shipbuilding Industry Corp (CSIC) and China State Shipbuilding Corp Ltd, with the combined entity having sales of more than three times its own.

The EC temporarily halted its probe on 13 July, the third time it has done so as the coronavirus pandemic and lack of data from the companies were slowing completion of the transaction.

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