Hyundai Heavy Seeks Japanese OK for Daewoo Takeover

Korea's top shipbuilder Hyundai Heavy Industries said Wednesday it has asked for Japan's approval to take over troubled Daewoo Shipbuilding and Marine Engineering.

If the merger goes through, Hyundai takes a 21 percent market share in the global shipbuilding industry, which is dangerously close to a monopoly, so it needs regulatory approval from countries it operates in. The application has been filed to the Japan Fair Trade Commission.

Hyundai has asked for approval in Korea, China, Kazakhstan, and Singapore so far and is preparing to do the same in the EU.

Industry insiders fear Japan will throw a monkey wrench in the works amidst soured relations between Korea and Japan. Last November, Japan sued the Korean government at the World Trade Organization, accusing it of providing illegal subsidies to shipbuilders.