China approves merger of Korea Shipbuilding and Daewoo Shipbuilding

China's antitrust watchdog has approved the merger between Korea Shipbuilding & Offshore Engineering Co. (KSOE) and Daewoo Shipbuilding & Marine Engineering Co. (DSME), notifying them that it did not violate any antitrust rules or hurt fair competition in their country.

The unconditional approval by China's State Administration for Market Regulation is the third for the merger. Similar verdicts were given by Kazakhstan, in October 2019 and by Singapore in August this year.

KSOE presented its merger request to the Chinese competition authorities in July last year, with China conducting three reviews.

China's approval is expected to positively impact antitrust reviews by South Korea, the European Union, and Japan, said a KSOE official.

The market's attention is now on the EU, which had delayed its review of the merger three times.

Hyundai Heavy Industries signed a deal to purchase a 55.72 percent stake in Daewoo Shipbuilding in March 2019, which would lead to the creation of the world's biggest shipbuilder with a global market share of around 20 percent.

KSOE has three shipbuilding units -- Hyundai Heavy Industries, Hyundai Samho Heavy Industries Co., and Hyundai Mipo Dockyard Co.