CCCS seeks feedback on the acquisition of Daewoo Shipbuilding & Marine Engineering
The shipbuilding company is being acquired by the Hanwha Group.
The Competition and Consumer Commission of Singapore (CCCS) has invited the public to provide feedback on Hanwha Group’s acquisition of Daewoo Shipbuilding & Marine Engineering.
The commission is studying whether the acquisition would infringe section 54 of the Competition Act 2004, which prohibits mergers that have resulted, or may result, in a substantial lessening of competition within any market in Singapore.
Hanwha Group is a conglomerate based in South Korea with business operations in Singapore.
According to CCCS, Hanwha Group is engaged in manufacturing and supplying compressors which are used as components in LNG carriers, whilst DMSE is engaged in the building of LNG carriers.
The commission added the transaction might result in vertical integration in the global markets for the supply of production and storage facilities for offshore plants.
“The Hanwha Group is engaged in manufacturing and supplying compressors required for production and storage facilities to manufacturers that build offshore plant facilities, whilst DSME manufactures and sells production and storage facilities for offshore plants, as well as for facilities related to drilling,
installation, and services,” CCCS explained.
The public can provide feedback on the proposed acquisition from 20 January to 3 February, 5 p.m