Hanwha countered, ＂We have not consulted with the FTC.＂

Hanwha countered, "We have not consulted with the FTC.": COMPANY / Reporter Kim Jisun / 2023-04-03 20:22:42

This article is translated by AI company Flitto and Alhpa Biz neural machine translation technology

공정거래위원회 (사진= 연합뉴스)

[Alpha Biz=(Chicago) Reporter Kim Jisun] Hanwha refuted the Fair Trade Commission's announcement that it is in talks with Hanwha on corrective measures to address concerns over restrictions on competition in the defense industry regarding Hanwha's acquisition of Daewoo Shipbuilding & Marine Engineering.

He also expressed concern over the delay in domestic screening at a time when foreign rival authorities have already approved the business combination. However, they are determined to actively cooperate if there is a request from the FTC.

"So far, nothing has been proposed by the FTC a correction plan that can address concerns over competition restrictions, and it is not true that it is under discussion," Hanwha said in a statement on the 3rd.

The FTC met with reporters earlier in the day and explained the progress of the review of the business combination of the two companies, saying, "We are currently discussing corrective measures with our company to address concerns over competition restrictions."

Unlike foreign rival authorities, they judged that there was a "concern about blocking competitors" and asked Hanwha to come up with and submit its own corrective measures late last month. The FTC's position is that a vertical combination between Hanwha's defense sector and Daewoo Shipbuilding's ship sector could limit market competition, which needs to be considered.

In response, Hanwha claimed, "We have not been asked to ask about the company's position or submit related opinions on specific measures of corrective measures."

"We have actively explained the FTC's demand for data as soon as possible," Hanwha said. "We will faithfully come forward with any demands or requests for dialogue in the future."

According to the industry, seven out of eight countries under review approved the merger as the European Union's rival executive committee approved the combination of Hanwha and Daewoo Shipbuilding on the 31st of last month.

Once the licensing process at home and abroad is completed with the approval of the FTC, Hanwha will invest 2 trillion won to acquire new shares of Daewoo Shipbuilding & Marine Engineering and secure a 49.3% stake for management rights.