Hyundai Heavy Industries Group, South Korea’s top shipbuilder, said Wednesday it has begun the procedure to get administrative endorsement in Japan for its takeover of nearby rival Daewoo Shipbuilding and Marine Engineering Co.
Hyundai Heavy said it is presenting an administrative endorsement application to the Japan Fair Trade Commission.
The move came when pressures between South Korea and Japan have been heightening after Tokyo forced confinements on exports of three cutting edge materials essential to the assembling of semiconductors and shows in July and expelled South Korea from its rundown of believed exchange accomplices a month ago.
In March, Hyundai Heavy marked a formal arrangement, worth an expected 2 trillion won (US$1.6 billion), with the state-run Korea Development Bank (KDB) to purchase Daewoo Shipbuilding. The bank is the biggest investor of Daewoo Shipbuilding, with a controlling 55.7 percent stake in the organization.
Winning administrative endorsement from residential and outside corporate controllers has been viewed as a key obstacle confronting Hyundai Heavy’s endeavors to finish the obtaining of Daewoo Shipbuilding, since the tie-up of the two noteworthy shipyards could reshape the worldwide shipbuilding scene with their prevailing business sector position.
A complaint from one nation could wreck Hyundai Heavy’s offered to bring Daewoo Shipbuilding under the care.
Up until this point, the shipbuilder has presented the solicitation to South Korea, China, Kazakhstan and Singapore. It is likewise in the primer procedure of presenting the application to the European Union.