PROPOSED ACQUISITION OF DAEWOO ENGINEERING & CONSTRUCTION CO LTD BY JUNGHEUNG CIVIL ENGINEERING & BUILDING CO LTD AND JUNGHEUNG CONSTRUCTION CO. LTD

This notification to the Federal Competition and Consumer Protection Commission (the Commission") relates to the acquisition by Jungheung Construction Co. Ltd and Jungheung Civil Engineering & Construction Co LTD (both Jungheung or Jungheung Entities) of Daewoo Engineering Construction Co LTD (Daewoo) (all referred to as the Parties or Merging Parties) through a share purchase agreement entered into between the Merging Parties (the Proposed Transaction).

The Proposed Transaction involves the acquisition of joint control by Jungheung (as defined above) of 50.75% of the voting shares of Daewoo. 

The Jungheung Entities are related construction companies incorporated under the laws of South Korea, and are engaged in civil engineering, residential building construction, non-residential building construction, architecture works, land creation, electricity work, firefighting and urban development & maintenance businesses.

Daewoo is incorporated under the laws of South Korea and listed on the Korea Stock Exchange. It is mainly engaged in civil engineering, plant construction, residential building construction, non-residential building construction and urban development & maintenance businesses.

Although Jungheung and Daewoo engage in construction service business, only Daewoo is involved in the construction service market in Nigeria. Jungheung mainly runs a housing construction business in Korea while Daewoo runs various sectors of construction business including housing, plant, civil engineering etc. Daewoo also has the relevant technical know-how and experience in the construction industry. By acquiring Daewoo, Jungheung intends to expand its business scope, create synergies, and enhance its competitiveness as a construction company.

It is submitted that no horizontal, conglomerate or vertical competition concerns will arise in the Nigerian construction sector as a result of the Proposed Transaction. Furthermore, no public interest concerns will arise as a result of the Proposed Transaction and there will be no negative impact on employment in Nigeria.