Hyundai Heavy Industries Holdings (HHIH) has filed an appeal in the European Union General Court against the EU’s objection to its proposed takeover of compatriot yard Daewoo Shipbuilding & Marine Engineering (DSME).
The world’s largest shipbuilder said it filed the appeal on 23 March.
In January this year, the EU said that the proposed acquisition would result in the merged entity dominating the construction of LNG carriers.
Competition commissioner Margrethe Vestager said that it would lead to fewer suppliers and higher prices for LNG carriers, and insisted Europe needed to protect its interests to secure gas supplies.
“LNG contributes to the diversification of Europe's source of energy and therefore improves energy security,” she said.
“The merger between HHIH and DSME would have led to a dominant position in the global market for the construction of large LNG vessels, for which there is significant demand from European carriers.”
At the time HHIH countered that the EU’s position was “unreasonable”.
It argued that the shipbuilding industry is controlled by shipowners’ orders and preferences, and not market share.
Objecting to the EU decision HHIH said: “In bidding markets, having high market share may not confer market power, as market share can be easily lost in the next bidding round.”
