South Korea’s three biggest shipbuilders are discussing a joint bid for the French group Gaztransport & Technigaz in order to head off a Chinese challenge, according to people close to the talks.

Hyundai Heavy Industries, the world’s biggest shipbuilder by sales, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries are in talks to team up for a €1bn bid for the French engineering firm, which specialises in cargo containment systems for high-end liquefied natural gas carriers. The South Korean shipbuilders are dominant players in the LNG ship market but face a growing challenge from Chinese rivals.

Late last year three GTT shareholders were understood to have held initial discussions with bankers about a possible sale, which is attracting interest from Chinese companies as well, according to an industry official.