EUROPEAN COMMISSION DG Competition

Only the English text is available and authentic.

REGULATION (EC) No 139/2004 MERGER PROCEDURE

Article 6(1)(b) NON-OPPOSITION Date: 31/03/2023

In electronic form on the EUR-Lex website under document number 32023M11028

EUROPEAN COMMISSION

Brussels, 31.3.2023 C(2023) 2360 final

PUBLIC VERSION

Hanwha Corporation 24th Floor, Hanwha Building 86 Cheonggyecheon-ro Jung-gu, Seoul, 100-797 South Korea

Dear Sir or Madam,

1.1. On 9 March 2023, the European Commission received notification of a proposed concentration pursuant to Article 4 of the Merger Regulation by which the Hanwha Group (South Korea), ultimately controlled by the Seung Youn Kim family, will acquire within the meaning of Article 3(1)(b) of the Merger Regulation sole control of Daewoo Shipbuilding Marine Engineering Co., Ltd (‘DSME’, South Korea), controlled by its majority shareholder, the Korea Development Bank, by way of a purchase of shares.

2. The business activities of the undertakings concerned are the following:

−− The Hanwha Group, comprising (i) Hanwha Corporation and (ii) Hanwha Energy as well as their respective affiliates, is based in South Korea. The Hanwha Group is controlled by the Seung Youn Kim family. The Hanwha Group is active in aerospace and mechatronics; chemicals products and materials; solar, renewable energy and energy solutions; financial services; construction, leisure and lifestyle,

1 OJ L 24, 29.1.2004, p. 1 (the ‘Merger Regulation’). With effect from 1 December 2009, the Treaty on the Functioning of the European Union (‘TFEU’) has introduced certain changes, such as the replacement of ‘Community’ by ‘Union’ and ‘common market’ by ‘internal market’. The terminology of the TFEU will be used throughout this decision.

2 OJ L 1, 3.1.1994, p. 3 (the ‘EEA Agreement’).

3 Publication in the Official Journal of the European Union No C 98, 16.3.2023, p. 34.

44 Hanwha Corporation, controlled by the SYK Family, controls a number of companies including the acquiring entities: Hanwha Aerospace Co. Ltd. and Hanwha Systems Co. Ltd. Hanwha Energy, wholly-owned by the SYK Family, controls a number of companies including the acquiring entities: Hanwha Convergence Co. Ltd., Hanwha Impact Partners Inc. and Hanwha Energy Corporation Singapore Pte. Ltd.

−− DSME is a South Korean shipbuilding and ocean infrastructure company. DSME manufactures a wide range of commercial vessels and supplies offshore facilities construction related products. In addition, DSME also designs and builds naval and specialty ships such as submarines and surface ships for military use.

3.3. After examination of the notification, the European Commission has concluded that the notified operation falls within the scope of the Merger Regulation and of paragraph 5(c) of the Commission Notice on a simplified procedure for treatment of certain concentrations under Council Regulation (EC) No 139/2004.

4.4. For the reasons set out in the Notice on a simplified procedure, the European Commission has decided not to oppose the notified operation and to declare it compatible with the internal market and with the EEA Agreement. This decision is adopted in application of Article 6(1)(b) of the Merger Regulation and Article 57 of the EEA Agreement.

For the Commission

(Signed) Olivier GUERSENT Director-General

5 OJ C 366, 14.12.2013, p. 5.

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