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Samsung Heavy Industries is not interested in buying Daewoo Shipbuilding & Marine Engineering, Daewoo’s top shareholder said on Tuesday, paving the way for the $2bn acquisition of Daewoo by Hyundai Heavy Industries.

State-run Korea Development Bank (KDB), which holds a 56 percent stake in Daewoo, said it plans to sign a deal in early March to sell the shipbuilder to sole bidder Hyundai Heavy Industries, pending its board approval.

Last month, industry leader Hyundai Heavy announced a share swap deal worth Won2.1tn ($1.98bn) to take over second-ranked Daewoo to create a super yard controlling over 20 percent of the global market

The news buoyed shares of Samsung Heavy 3.7 per cent on Tuesday afternoon amid hopes of reduced competition in the industry, while shares of Hyundai Heavy and Daewoo Shipbuilding gained 0.4 per cent and 0.6 per cent respectively.

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