European Acquisition
The Korea Development Bank (KDB) is considering the sale of STX France to Daewoo Shipbuilding & Marine Engineering (DSME).
An official from KDB said on May 11, “We are currently examining various measures related to the management, including the sale of STX France to DSME. However, the disposal is just one of examination plans and nothing is decided yet.”
STX France is one of the subsidiaries of STX Europe, and its 34 percent stake is owned by the French government. Contrary to earlier expectations that the sale would progress favorably, the disposal process has not gone well for five months.
With the current situation to activate the cruise ship market, KDB is considering the scenario that DSME takes over STX France. This is because the bank believes it has the investment value, since the government seeks to prop up cruise ships in order to promote its new growth engine. As DSME propelled the acquisition of Aker Yards, the current STX Europe AS, in 2007, the company is expected to have no problem in the management sector as well.
However, some in the industry think that the DSME will face plenty of difficulties until taking over STX France due to its financial situation. Since the DSME also does not have enough spare money, the scenario is rising that both are ailing companies. Another official from KDB said, “Selling STX France to the DSME is not an easy task to accomplish with the will of KDB alone, due to the equity structure of STX France. It is a possible scenario, but we should wait and see for a while.”