Sunday 29 May 2022
Home European Commission EU considers blocking merger of South Korean shipyards

EU considers blocking merger of South Korean shipyards

The European competition authority is about to block the proposed merger between the two largest shipbuilders in the world in South Korea. According to the EU, the merger between Daewoo Shipbuilding & Marine Engineering and Hyundai Heavy Industries is anticompetitive and should be stopped. 

The European veto will be the first since Brussels prevented a merger between the Indian Tata Steel (including Hoogovens) and the German Thyssenkrupp more than two years ago. The EU is against it if mergers create economic superpowers that become market dominant, which can drive up prices for consumers.

Brussels is said to be particularly concerned about the dominant position of the two South Korean shipbuilders in the market for the transport of liquefied natural gas, especially now that European energy prices are rising sharply. The two companies dominate the shipbuilding market that transports super-cooled liquefied natural gas.

The proposed merger was first announced in 2019. Brussels had required the companies to come up with solutions to address competition concerns. Hyundai had proposed not to raise the prices for tankers for the time being, but that offer fell short. 

The merger has already been approved by regulators in Singapore, China and Kazakhstan, but still needs a green light from authorities in the United States and Europe. A EU official said blocking the merger would help protect European consumers from paying higher prices for gas. The EU is the third largest importer of liquefied gas in the world.

Popular

Sick father and five adult children for nine years & #8216; locked up & #8217;

The Dutch police have found six people in a remote farm in the northeast of the country who may have nine years ...

The Netherlands cannot simply send asylum seekers back to Greek camps

The Netherlands may only send rejected asylum seekers back to Greece if it is clear in advance that they can obtain legal assistance from a lawyer ...

IMF and ECB warn of declining economic growth

The International Monetary Fund (IMF) believes that the euro countries should take precautionary measures in case economic growth starts to stagnate. That...

Oleg Sentsov criticizes Russia, praises Europe and praises Ukraine

Ukrainian filmmaker Oleg Sentsov has received the most important human rights prize in the European Union in Strasbourg after his recent ...

Turkey and Russia divide the loot in Libya: EU and US further offside

The European Union calls on the warring parties in Libya to immediately stop hostilities and strictly follow the UN arms embargo ...

Just in

'Smaller livestock with EU subsidy to improve animal welfare'

Countries that want to reduce their livestock could apply for EU subsidies to improve animal welfare. In the new eco-schemes...

Italian farmers will soon also be able to sell electricity from solar panels

Italian farmers can now also sell the self-generated electricity from their solar panels to energy companies. The Italian Minister of Agriculture...

EU countries again postpone Green Deal part in agriculture

The new European compulsory crop rotation in fields that would come into effect next year will probably be postponed. The European Commission and the 27...

'The EU is not a breadbasket for the world, but an expensive supermarket'

The environmental protection organization World Wildlife Fund (WWF) believes that agriculture in the European Union makes only a limited contribution to the...

No vaccination of EU poultry against bird flu this year

The Agriculture Ministers of the 27 EU countries have unanimously approved a strategy to enable vaccination of chickens against bird flu....