Business News

Talks on Daewoo shipyard sale collapse

Jan 22, 2009, 7:50 GMT

Seoul - Talks on the planned sale of South Korea's Daewoo Shipbuilding & Marine Engineering to the country's Hanwha conglomerate failed Thursday, said the shipyard's owners, the state-un Korea Development Bank (KDB). KDB said the talks were officially abandoned after Hanwha ran into problems financing the acquisition of a majority share. KDB also declined Hanwha's demands for a change in the payment modalities. The bank said it now planned to closely watch the market environment before putting its share in the world's third-largest shipbuilder on sale again. State-controlled bodies, including KDB, currently hold a 50.4-per-cent share of Daewoo. Hanwha was selected as exclusive bidder in October and signed a pre-contract in November, but asked for a change in payment conditions. According to Korean news reports, Hanwha's offer was around 6 trillion won (4.36 billion US dollars). Other competitors for Hanwha had been Hyundai Heavy Industries, the world's largest shipbuilder, and South Korean steelmaker POSCO. Daewoo's sale is connected to the government's plans to privatize KDB. dpa dg im jh

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Talks on Daewoo shipyard sale collapse

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