Samsung Heavy Industries is seen as an unlikely challenger to Hyundai Heavy Industries in taking over compatriot DSME, Yonhap News Agency reports.
Korea Development Bank (KDB) is looking to sell its controlling interest in DSME to HHI in a $2bn transaction which would merge the two largest shipbuilders in the world.
However, SHI was also given the chance to construct a rival proposition.
Now, Yonhap reports SHI is “unlikely to join the race” for DSME, citing shipbuilding market sources.
An SHI official told Yonhap: "As far as I know, the management is reviewing the proposal [from KDB]. But it is too early to say [whether to bid or not]."
TradeWinds has reported that despite SHI being given a potential route to the table, HHI is seen as the natural consolidator.
HHI is the yard to undertake the “kitchen-sink works”, a respected analyst told TradeWinds last week.
DSME is sitting on a $14.2bn backlog of 86 vessels, while HHI and its three major shipbuilding spin-offs share a 289-ship orderbook worth about $22bn, according to VesselsValue.