Hyundai Heavy Group to bear Doosan Infracore at 850 billion won-Chosunbiz> Industry> Company

Input 2021.02.05 16:29 | Revision 2021.02.05 16:40

Hyundai Heavy Industries Holdings (267250)Is the number one construction equipment company in Korea Doosan Infracore (042670)Will be acquired for 850 billion won.

According to Hyundai Heavy Industries Group on the 5th, the holding companies, Hyundai Heavy Industries Holdings and KDB Investment (KDBI) consortium, Doosan Heavy Industries & Construction (034020)And signed a main contract for acquisition.

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. The Doosan Bobcat shares held by Doosan Heavy Industries & Construction were excluded from the sale.

Earlier, on September 28 of last year, the Hyundai Heavy Industries Holdings Consortium participated in a preliminary bidding to select Doosan Infracore’s preferred negotiator. It was selected as the preferred negotiator on December 10th, and the acquisition process for four months, including the signing of a binding memorandum of understanding (MOU) on December 23rd.

As Hyundai Heavy Industries Group acquired Doosan Infracore, Hyundai Construction Equipment (267270)Leaps to the No. 1 company in Korea and the 7th in the world. Hyundai Heavy Industries Group plans to serve as a control tower while supporting the independent management system of each corporation. It is to maximize synergy effects by strengthening the R&D sector and coordinating overlapping investments.

The industry is paying attention to the impact of the combination of the first and second largest domestic companies on the construction equipment market. Doosan Infracore has strengths in medium-sized machinery such as excavators, wheel loaders and articulated dump trucks, while Hyundai Construction Equipment has strengths in ultra-large equipment such as forklifts and industrial vehicles. The combination of the two companies is expected to realize the’economy of scale’, thereby diversifying products and reducing costs.

Hyundai Heavy Industries Group plans to request approval from major countries such as the Fair Trade Commission and China in the future. It plans to complete the acquisition process within 3Q.

Kwon Oh-gap, chairman of Hyundai Heavy Industries, said, “I am happy to welcome Doosan Infracore, the top construction equipment company in Korea, with its sales know-how and excellent talent, but I am heavy with the responsibility to grow it.” “We will not spare any support for future technology investments tailored to the changes in the market flow so that we can do it.”