STX control of Aker Yards a step closer

South Korea’s STX Shipbuilding is expected to win the EC?s approval for a controlling interest in Norway’s Aker Yards. The EC, the European Union’s top competition regulator, blocks deals only after sending a statement of objections. The industry source said it had not done so, and experts say it is now too late to issue one before a May 15 Commission deadline for its decision on the case.

When the Commission opened a 90-working-day, in-depth probe of the $800 million deal in December, it noted Aker was one of only three large players worldwide in the construction of cruise ships, a structure it called oligopolistic. STX had been considering entering the market and the merger might remove a potential new player, the EU’s executive arm said. But the EC has since decided against sending a statement of objections, a formal charge sheet raising arguments against a proposed deal.

STX bought a 39.2 % stake in Aker Yards in October 2007, making it the biggest shareholder. The Korean company called the purchase of 44.6 million shares “part of an investment in new growth engines for the future” and a “strategic partnership”. The stake gives it effective control of Aker Yards.