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Korea Shipbuilding, KDB again extend deadline for DSME deal

June 30, 2021

Korea Shipbuilding & Offshore Engineering Co. (KSOE) said Wednesday that it has agreed with a state-run lender to extend a deal to buy Daewoo Shipbuilding & Marine Engineering Co. (DSME) by three months.

KSOE signed the deal with the state-run Korea Development Bank (KDB), main creditor of DSME, in March 2019 to buy a 55.72 percent stake in the shipbuilder that had been mired in a severe cash shortage since 1999.

KSOE and KDB delayed the deal for the fourth time since March 2019.

KSOE has to get approval for the deal from six countries — China, Singapore, Kazakhstan, Japan, the EU and South Korea — to finalize it, but only three countries — China, Kazakhstan and Singapore – have given the green light.

The approval by the EU has been considered crucial for the combination between KSOE and DSME.

The deal could create the world’s biggest shipbuilder with a 21 percent market share.