Hyundai Heavy Industries Group has Doosan Infracore, the number one construction equipment company in Korea. Doosan Heavy Industries & Construction, which surpassed Doosan Infracore, will be able to complete its financial structure improvement plan (self-guaranteed) worth 3 trillion won without a hitch.
Hyundai Heavy Industries Holdings and KDB Investment Consortium announced on the 5th that they have signed a main contract to acquire Doosan Infracore with Doosan Heavy Industries & Construction. The Hyundai Heavy Industries Holdings Consortium will take over 34.97% of Doosan Infracore’s shares held by Doosan Heavy Industries & Construction for 850 billion won.
Hyundai Heavy Industries Group, combined with its affiliates, Hyundai Construction Equipment, which is the second largest in Korea, and Doosan Infracore, made a leap to become the No. 1 company in Korea and No. 7 in the world. Doosan Infracore excels in medium-sized machinery such as excavators, wheel loaders, and articulated dump trucks. As Hyundai Construction Equipment has strengths in super-sized equipment, it is possible to enjoy economies of scale such as product diversification and cost reduction by combining the two companies.
In addition, Hyundai Heavy Industries Group can utilize Doosan Infracore’s overseas sales network. Last year, Doosan Infracore competed for the world’s No. 1 Caterpillar and the No. 1 share of overseas companies in the Chinese market.
Hyundai Heavy Industries Group plans to maintain the independent management system of the two construction equipment companies and focus on stabilizing the employment of Doosan Infracore employees. The Fair Trade Commission and major countries, such as China, are planning to complete the acquisition process within the third quarter of this year by requesting approval for a merger.
Kwon Oh-gap, chairman of Hyundai Heavy Industries Holdings, said, “With the acquisition of the No. 1 construction equipment company, Hyundai Heavy Industries Group has formed a portfolio focusing on key industries such as shipbuilding, oil refining, and construction machinery. I will not spare any support so that I can do it.”
For Doosan Group, the sale of Doosan Infracore ended the group restructuring. Last year, the Doosan Group began selling major affiliates and assets such as Doosan Infracore and Doosan Tower to implement a self-reliance plan worth 3 trillion won. In the future, Doosan Group will improve its structure as an eco-friendly energy company centered on Doosan Heavy Industries & Construction and Doosan Fuel Cell.
Reporter Kim Chang-hoon [email protected]
News directly edited by the Hankook Ilbo can also be viewed on Naver.
