Korea Fair Trade Commission Chairman Kim Sang-jo said on March 11 that the commission’s inspection on the business combination between Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering would reach a reasonable conclusion. Referring to the Alstom-Siemens merger, which was rejected by the European Commission last month, the chairman said that the two merger cases are quite different in nature and the former is much less likely to be rejected.
“The Korea Fair Trade Commission will reach a conclusion ahead of any other competition authorities,” he said after his meeting with the European Commission in Brussels. Korea Development Bank signed a contract with Hyundai Heavy Industries on March 8 to sell Daewoo Shipbuilding & Marine Engineering and multiple countries’ competition authorities are going to look into the combination.
“We will reach a conclusion that can be referred to and approved by the other competition authorities so that leniency is not mentioned from the beginning,” he went on to say, continuing, “Even the possibility of bankruptcy of Daewoo Shipbuilding & Marine Engineering that could follow an unsuccessful sale is a factor to be considered during our inspection.”