Japan Approves Hanwha and Daewoo Shipbuilding & Marine Engineering Corporate Merger Review

[Image source=Yonhap News]

Japan became the third of the eight review countries to approve the merger between Hanwha Group and Daewoo Shipbuilding & Marine Engineering (DSME).

According to industry sources on the 17th, Japanese authorities recently gave final approval for the merger between Hanwha Group and DSME.

Earlier, Turkey approved the merger last month. The UK, where the review is completed if no issues arise after submission, has also effectively granted approval.

Now, approvals remain from five authorities including the Korea Fair Trade Commission, the European Union (EU), China, Singapore, and Vietnam. In the case of the EU, a provisional review result will be notified on the 18th of next month.

Hanwha Group and DSME signed a new share subscription agreement involving a 2 trillion KRW paid-in capital increase in December last year. Five Hanwha affiliates are participating in the capital increase.

However, the merger must pass domestic and international merger reviews before the capital increase. In 2019, Hyundai Heavy Industries attempted to acquire DSME, but the EU rejected the merger, causing the sale process to revert to the starting point.

Once the approval procedures are completed, Hanwha Group will inject 2 trillion KRW of new funds, acquire new shares of DSME, and secure a controlling stake of 49.3%.