[팍스넷뉴스 유범종 기자] Hyundai Heavy Industries Group embraced Doosan Infracore. Hyundai Heavy Industries Group, which joined hands with KDB Investments and jumped into the takeover, confirmed the takeover two months after it was selected as the preferred bidder for the acquisition by defeating rival competitors such as Eugene Group and GS E&C. Hyundai Heavy Industries Group expects to maximize business synergy with Hyundai Construction Equipment, a subsidiary of the group, through the acquisition of Doosan Infracore.
On the 5th, Hyundai Heavy Industries Holdings announced that it has signed a main contract to acquire Doosan Infracore with Doosan Heavy Industries & Construction. Doosan Heavy Industries & Construction sold its subsidiary Doosan Infracore by splitting it into a business company and an investment company. Buy. The stake acquisition price is 850 billion won.
As Hyundai Heavy Industries Group embraces Doosan Infracore, in addition to its subsidiary Hyundai Construction Equipment, the domestic construction equipment market share is expected to rise to around 50%. Separating the mid- to large-sized excavator market, which both companies have strong points, their share soared to the 70% level. In fact, it has established an unrivaled territory in the domestic market.
In the global market, it is expected that it will quickly become a top-tier construction equipment manufacturer. As of 2018, Doosan Infracore took 3.7% of the global construction equipment market share and Hyundai Construction Equipment had 1.5%. With both companies in their arms, Hyundai Heavy Industries Group is now facing the world’s fifth largest company, Volvo Construction Equipment (5.2% market share) of Sweden.
A business official said, “With Hyundai Heavy Industries Group’s acquisition of Doosan Infracore, we can expect not only economies of scale, but also synergies in various aspects such as building a joint dealer network, purchasing joint materials, and researching and developing advanced technologies.”
The business combination examination, which some are concerned about, is expected to pass smoothly. The business combination review is when there is a concern about monopoly by the merger of the two companies, and the competition authorities review and approve it. Hyundai Heavy Industries Group’s acquisition of Doosan Infracore has formed a monopoly in the domestic market, but the construction machinery industry is one of the major manufacturing industries in the country, and both companies do not yet have a high share of the global construction equipment market. .
An official of Hyundai Heavy Industries Group said, “In the case of the construction machinery industry, there are no import restrictions, so the consumer has the right to decide the price. It is determined that there will be no major problems,” he said, and plans to complete the acquisition process within the coming three quarters.
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