{"id":2344,"date":"2019-02-03T16:48:20","date_gmt":"2019-02-03T16:48:20","guid":{"rendered":"http:\/\/euromenaenergy.com\/?p=2344"},"modified":"2019-02-03T16:48:20","modified_gmt":"2019-02-03T16:48:20","slug":"s-korea-to-combine-worlds-2-biggest-shipbuilders","status":"publish","type":"post","link":"https:\/\/emimer.com\/?p=2344","title":{"rendered":"S Korea to combine world\u2019s 2 biggest shipbuilders"},"content":{"rendered":"<div class=\"subtitel col-lg-12\">\n<p>Reuters\/Seoul<\/p>\n<\/div>\n<p>Hyundai Heavy Industries, the world\u2019s biggest shipbuilding group, has announced a share swap deal worth 2.1tn won ($1.98bn) to take over second-ranked Daewoo and create a global heavyweight controlling over 20% of the market.<br \/>\nThe move comes as the worldwide shipbuilding sector recovers from a global economic downturn that led to massive losses, widespread job cuts and, in 2017, the $2.6bn bailout of South Korea\u2019s Daewoo Shipbuilding &amp; Marine Engineering Co Ltd.<br \/>\nState-funded Korea Development Bank (KDB) owns 55.7% of Daewoo, and has said it intends to sell the stake and consolidate the country\u2019s three biggest shipbuilders \u2013 which includes Samsung Heavy Industries Co Ltd \u2013 into two.<br \/>\nThe combination of two of the giant shipbuilders would ease competition and excess capacity, which have depressed ship prices, KDB chairman Lee Dong-gull said at a news conference.<br \/>\nThe deal will \u201craise the fundamental competitiveness of Daewoo, at a time when the threat from latecomers in China and Singapore is growing,\u201d Lee said yesterday.<br \/>\nHyundai and Daewoo hold a combined market share of 21.2%, followed by Japan\u2019s Imabari Shipbuilding with a 6.6%, showed data from Clarksons Research.<br \/>\nLee said it will take several months to gain approval from antitrust regulators from related countries. He said the size of the resulting entity\u2019s market share would not be detrimental to the interests of customers.<br \/>\nDaewoo will also receive liquidity support of 2.5tn won ($2.25bn) from KDB and Hyundai, Hyundai said in a stock exchange filing.<br \/>\nKDB also said it would approach Samsung Heavy to gauge any interest in taking over Daewoo. A Samsung Heavy spokesman said it has received a proposal from KDB and that it needs to review the matter.<br \/>\nDaewoo shares rose as much as 22% yesterday, before ending up 2.5%.<br \/>\nThose of Hyundai Heavy Industries Holdings Co Ltd and unit Hyundai Heavy Industries Co Ltd fell about 4% on concern about a high purchase price, analysts said. Meanwhile, Samsung Heavy shares ended up 2.5%, as investor concerns of it bidding for Daewoo eased. \u201cConsolidation is good for the industry, but not for the company which buys the stake,\u201d said analyst Um Kyung-a at Shinyoung Securities, citing overlapping businesses between Hyundai and Daewoo.<br \/>\nThe shipbuilding industry accounts for 7% of both exports and employment in Asia\u2019s fourth-biggest economy. Hyundai Heavy\u2019s workers\u2019 union said it will delay a vote on last year\u2019s wage deal in protest of a purchase it says could threaten job security.<br \/>\nIt said it would be \u201cangered\u201d if the shipbuilder ploughed money into buying another big firm having released workers after reporting losses and shrinking orders. KDB\u2019s Lee ruled out any job cuts after the combination.<br \/>\nHyundai\u2019s holding company is set to raise funds for acquisitions through the sale of part of its stake in refiner Hyundai Oilbank Co Ltd to Saudi Aramco for up to 1.8tn won.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reuters\/Seoul Hyundai Heavy Industries, the world\u2019s biggest shipbuilding group, has announced a share swap deal worth 2.1tn won ($1.98bn) to take over second-ranked Daewoo and create a global heavyweight controlling over 20%&#8230;<\/p>\n","protected":false},"author":1,"featured_media":2356,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[46,48,57,90,96,107,113,137,139,160,174,183,184,201,202,209,230,232,233,244,246,249,256,267,277,279,288],"class_list":["post-2344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-aramco","tag-athens","tag-baroudi","tag-democracy","tag-doha","tag-embargo","tag-energy-peace","tag-gas","tag-gazprom","tag-international-maritime-disputes","tag-lebanon","tag-maritime-boundaries-east-mediterranean","tag-maritime-disputes","tag-offshore","tag-oil","tag-opec","tag-poverty-alleviation","tag-putin","tag-qatar","tag-rosneft","tag-roudi","tag-russia","tag-saudi","tag-straddling-hydrocarbons-reserves","tag-total","tag-trump","tag-usa"],"_links":{"self":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/2344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2344"}],"version-history":[{"count":0,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/2344\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/media\/2356"}],"wp:attachment":[{"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}