After more than two years of in-depth investigation, the European Commission opposed the marriage of the two South Korean giants for fear that this union would increase the cost of transporting LNG.
The European Commission was concerned about the impact for oil tankers or container ships, for example, but the decision of Thursday 13 January relates to the market for large carriers of liquefied natural gas.
The acquisition of Daewoo Shipbuilding & Marine Engineering by Hyundai Heavy Industries would have created the largest player in the sector: these two groups already control more than 60% of the world market.
Margrethe Vestager, the guardian of competition in the EU, believes that only a handful of competitors would have survived in this already concentrated market.
Further increase the energy bill
However, nearly half of global orders have been placed in recent years by European customers and gas is a strategic commodity.
The risk, in the eyes of Brussels, is that the shipowners of the Old Continent no longer have sufficient bargaining power and that transport prices will further increase the energy bill.
The two companies did not formally respond to these concerns, leading to the commission’s refusal.
A rather rare ban. A judged decision unreasonable ” and ” disappointing by Hyundai. The group does not rule out an appeal to EU justice.