Exclusive: Hyundai’s $1.8 billion deal with Daewoo faces EU probe – sources

Exclusive: Hyundai’s $1.8 billion deal with Daewoo faces EU probe – sources

FILE PHOTO: Giant cranes of Hyundai Heavy Industries are seen in Ulsan, South Korea, May 29, 2018. Picture taken on May 29, 2018. REUTERS/Kim Hong-Ji

BRUSSELS (Reuters) – World No. 1 shipbuilding group Hyundai Heavy Industries Holdings Co Ltd’s (267250.KS) $1.8 billion merger with rival shipbuilder Daewoo is expected to face a full-scale investigation in Europe due to serious EU antitrust concerns, two people familiar with the matter said on Monday. 

In January, Hyundai announced the deal to create the world’s biggest shipbuilder with a 21 percent market share, in part a response to the over-capacity in the industry. The European Commission will launch an investigation into the deal next week, the people said.

Reporting by Foo Yun Chee, editing by Jan Strupczewski

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