Singapore competition body approves South Korean firm's shipyard takeover

The Competition and Consumer Commission of Singapore (CCCS) has given its official approval for South Korean conglomerate the Hanwha Group to acquire the remaining shares in Singapore-based shipbuilder Dyna-Mac Engineering Services for approximately US$450 million.

The CCCS has assessed that the proposed transaction, if effective, will not contravene the prohibition under section 54 of the Singapore Competition Act 2004, which prohibits mergers that are likely to substantially reduce competition in any market in Singapore.

Hanwha currently has a 25.4 per cent stake in Dyna-Mac. Under Hanwha's acquisition plan, Hanwha Ocean and Hanwha Aerospace will make a cash acquisition through Hanwha Ocean SG Holdings, a special purpose vehicle in Singapore, to gain management control of Dyna-Mac. This transaction is scheduled to close by the end of 2024.

Founded in 1990, Dyna-Mac specialises in engineering, procurement, construction, onshore pre-commissioning, and commissioning of offshore modules and units such as floating production storage and offloading units (FPSOs), floating storage and offloading units (FSOs), floating liquefied natural gas storage facilities (FLNGs), and floating storage and regasification units (FSRUs).

The company owns two offshore shipyards in Singapore and has established joint ventures and partnerships with shipyards in China, Malaysia, and the Philippines.