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2024 July 15   13:35

Regulator gives conditional nod to HD Korea Shipping's purchase of stake in STX Heavy

The antitrust regulator said Monday it has decided to give conditional approval to shipping company HD Korea Shipbuilding & Offshore Eengineering Co.'s acquisition of a controlling stake in STX Heavy Industries Co., according to Yonhap.

In July 2023, the shipping company signed a contract with a private equity firm to buy shares in STX Heavy, a major marine engines and parts manufacture, to become its largest shareholder by holding a 35.05 percent stake.

The measures include banning the refusal of supply requests for crankshafts, a pivotal engine component for vessels, and banning the postponement in supplies; ensuring the minimum volume of supply and limiting the increase in prices, which will be in effect for three years.

"The three-year period can be extended if needed given the market circumstances," the FTC said.