South Korean Court Designates Fincantieri As Preferred Bidder For STX France Shipyard

Fincantieri has been designated as the preferred bidder for South Korean STX Shipbuilding’s French unit by a South Korean court.

Fincantieri would now conduct field research on the shipyard and agree a price with the South Korean firm before signing a deal for its 66.6 percent stake, Judge Choi Ung-Young, who acts as a spokesman for the Seoul Central District Insolvency Court was quoted as saying by AFP Tuesday.

Fincantieri, Netherlands-based Damen Shipyards Group and French state-controlled naval shipbuilder DCNS had initially expressed interest in acquiring STX France, which specialises in building cruise ships.

But the Italian shipbuilding giant was the sole bidder to submit a binding proposal last month.

STX in 2008 bought a two-thirds stake in the huge shipyard in the western French port of Saint-Nazaire, later renamed STX France.

It is currently the company's only profitable unit. The French state holds the remaining stake and is extremely concerned about the future of the shipyard, a major local employer with a healthy order book for cruise liners.

STX Offshore's creditors last month narrowly approved a debt restructuring plan, avoiding the imminent liquidation of what was once South Korea's fourth largest shipbuilder.