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Singapore's state competition regulator approved the merger between Daewoo Shipbuilding & Marine Engineering Co. (DSME) and Korea Shipbuilding & Offshore Engineering Co. (KSOE), saying it did not violate any anti-trust rules or hurt fair competition in the sector.
The planned merger would create the world's largest shipbuilder with a global market share of around 21 percent.
The unconditional approval by the Competition and Consumer Commission of Singapore is the second of its kind for the proposed merger following the similar verdict made by Kazakhstan in October.
Singapore's approval is expected to positively impact reviews being carried out by the European Union, Japan, and China.
KSOE submitted its merger request to Singapore last September.
According to a KSOE official, Singaporean authorities initially expressed reservations on fair competition and the potential fallout for consumers, which were alleviated.
Hyundai Heavy Industries signed a contract to acquire a 55.72 percent share in Daewoo Shipbuilding in March 2019,
To acquire DSME, a reorganization was made with KSOE being the manager of Hyundai Heavy Industries, Hyundai Samho Heavy Industries Co., and Hyundai Mipo Dockyard Co.
