Korea's Hyundai Heavy Industries (HHI) could finalise a deal to take over rival DSME as early as next month.
This is according to a company insider cited by the Nikkei Asian Review.
But an agreement depends on seller Korea Development Bank (KDB) confirming that compatriot Samsung Heavy Industries has no interest in a deal.
KDB has signed a conditional deal with HHI to transfer its 55.7% holding in DSME, which would mean a merger of the two biggest shipbuilders in the world.
The bank said in a statement it had signed a memorandum of understanding that includes liquidity support of KRW 2.5 trillion ($2.25bn) for DSME.
Nikkei said the plan entails pumping in KRW 1.5 trillion through a private share placement.
HHI units Hyundai Samho and Hyundai Mipo would also be part of a joint venture that would dwarf Samsung, the report claimed.
