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China, Singapore approve Hanwha's plan to take over Daewoo Shipbuilding

March 22, 2023 - 21:11 By Yonhap

A liquefied natural gas carrier built by Daewoo Shipbuilding & Marine Engineering. (Daewoo Shipbuilding & Marine Engineering)

Hanwha Group has obtained approval from China and Singapore for its plan to take over Daewoo Shipbuilding & Marine Engineering Co. (DSME), company officials said Wednesday, leaving only South Korea and the European Union pending decisions on the acquisition.

The latest approvals came after Vietnam gave its approval a day earlier.

Hanwha announced the deal to buy the embattled South Korean shipbuilder in September last year. Turkey was the first to approve the plan, followed by Britain and Japan.

The EU is expected to deliver the result of its review on April 18, according to industry sources.
South Korea's Fair Trade Commission (FTC) has not given a clear position or timeline for its decision.

The FTC began to review the takeover plan on Dec. 19 last year. Deliberation on such matters in South Korea usually takes about a month, and it can be extended up to 120 days.

Hanwha signed an initial agreement with DSME for the acquisition through a 2 trillion-won (US$1.53 billion) rights offering.

A formal agreement was clinched in December, under which Hanwha Aerospace and five other Hanwha affiliates will acquire a 49.3 percent stake and managerial control in DSME. (Yonhap)