South Korean shipyard Hyundai Heavy Industries is selling its share of oil refinery Hyundai Oilbank to Saudi Arabian oil giant Saudi Aramco.

The sale of the 17 percent stake in Hyundai Oilbank is worth USD 1.2 billion, writes news agency Yonhap.

According to Yonhap, the money will be used in Hyundai Heavy Industries' acquisition of another major South Korean yard, Daewoo Shipbuilding & Marine Engineering (DSME).

The merger of the two shipyards, where Hyundai Heavy is buying DSME for around USD 1.78 billion, has been underway a long time, and the agreement was finally signed in March of this year.

However, the merger can only be finally approved once South Korean competition authorities, as well as authorities of other countries affected by the merger, approve the transaction.

Both the EU Commission and Germany are keeping a watchful eye on the merger, while it has also attracted the attention of Maersk.

English Edit: Jonas Sahl Jørgensen

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