Shipbuilding Giants Bid for STX France
Italian shipbuilding giant Fincantieri SpA and Dutch counterpart Damen Shipyards Group are in the running to buy STX France, which has been put on the block by Korean debt-ridden parent STX Offshore & Shipbuilding Co, reports WSJ.
Meanwhile, STX Offshore - once the Korea's number four shipbuilder - has submitted a proposal to a court on how to revive its business, according to a report in AFP. STX filed for the restructuring in May after struggling for years with mounting losses caused by mismanagement and a slump in global demand.
STX France, which specializes in building cruise ships, is the only profitable unit of STX, with a full order book for the next seven years.
The sale of the French yard is a key part of a restructuring plan by STX, which also includes cutting by 35% its 2,090 staff in Korea by the end of September.
STX France is a good asset, but there is still no certainty that an agreement with the bidders will be reached, said sources.
South Korean shipbuilding conglomerate Daewoo Shipbuilding and Marine Engineering (DSME) has shelved its plans to acquire STX France for the time being, according to DSME’s CEO Jung Sung-leep.
