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Samsung Heavy unlikely to join race for Daewoo Shipbuilding takeover

Logistic News - Published on Mon, 11 Feb 2019

Image Source: Sea News Global Maritime News
Yonhap reported that Samsung Heavy Industries Co, a major South Korean shipyard, is unlikely to join the race to take over Daewoo Shipbuilding & Marine Engineering Co., as its parent Samsung Group is not interested in further expanding its shipbuilding business. Last month, the state-run Korea Development Bank signed a temporary MoU with Hyundai Heavy Industries Co., the world’s largest shipbuilder by sales, to sell its controlling stake in rival Daewoo Shipbuilding. KDB is Daewoo Shipbuilding’s main creditor, with a 55.7 percent stake in the company.

KDB said that it would contact Samsung Heavy, to see if it is interested in the Daewoo Shipbuilding takeover.

A Samsung Heavy official said that “As far as I know, the management is reviewing the proposal (from KDB. But it is too early to say (whether to bid or not).”

Samsung Heavy is requested to make its own takeover proposal by no later than the end of the month. KDB plans to finalize a deal in early March after reviewing Samsung Heavy’s proposal.

Industry sources said in the past, Samsung has repeatedly denied its intentions to take over Daewoo Shipbuilding and this time it would not be much different as well. If the takeover, estimated at over 2 trillion won, goes ahead, the South Korean shipbuilding industry is expected to be dominated by two major shipbuilders — Hyundai Heavy and Samsung Heavy.

South Korean shipbuilders, once a cornerstone of the country’s economic growth and job creation, had been reeling from mounting losses in the past few years, caused by an industrywide slump and a glut of vessels amid tough competition with Chinese rivals.

Source :

Posted By : Joykumar Irom on Mon, 11 Feb 2019
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