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The European Union blocked Hyundai Heavy Industries Co.’s
329180,
acquisition of Daewoo Shipbuilding & Marine Engineering Co.
047040,
saying that the tie-up would reduce competition for the construction of large liquefied gas carriers globally.
The European Commission, the EU’s executive arm, said Thursday that the combined company would wield a dominant position that could lead to fewer suppliers and higher prices for large vessels transporting LNG.
Thursday’s decision comes after the commission carried out an in-depth investigation into the deal of which it was notified in November 2019.
The two companies didn’t formally offer remedies to address competition concerns, the EU said.
“Given that no remedies were submitted, the merger would have led to fewer suppliers and higher prices for large vessels transporting LNG. This is why we prohibited the merger,” EU Executive Vice-President Margrethe Vestager said.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
