South Korean conglomerate Hanwha Group has signed an agreement to take over South Korean yard Daewoo Shipbuilding & Marine Engineering, Daewoo Shipbuilding said.
The deal comes after the two parties signed a tentative agreement in September 2022 in which affiliates of Hanwha Group including Hanwha Aerospace said they would invest 2 trillion won (US$1.53 billion) in return for a 49.3% shareholding and management rights in Daewoo shipbuilding. Hanwha Group, South Korea's seventh-largest conglomerate with 80 trillion won (US$61.1 billion) in assets, is involved in energy, defence and financial industries but until now not in shipbuilding.
The takeover deal still needs to be approved by foreign competition regulators, including in the European Union, Japan, China and Singapore, Daewoo said. Earlier in 2022, rival South Korean yard Hyundai Heavy Industries' attempt to take over Daewoo was vetoed by the EU over concerns the deal, which would have created the world's largest shipbuilder, would reduce competition.
Final deal for Daewoo Shipbuilding takeover signed