Hyundai Heavy Industries inks definitive agreement to acquire DSME
Category: #business  By Mateen Dalal  Date: 2019-03-11
  • share
  • Twitter
  • Facebook
  • LinkedIn

Hyundai Heavy Industries inks definitive agreement to acquire DSME

The deal is anticipated to boost South Korea’s local economy and provide stable job offerings in the country.

Hyundai Heavy Industries Co. (HHI), one of the world’s leading shipbuilding companies, has recently inked a formal deal with the state-run Korea Development Bank (KDB) to acquire its smaller local rival Daewoo Shipbuilding & Marine Engineering Co. (DSME) with some 20% market share.

Sources close to the move claim that KDB, as part of the deal estimated at over 2 trillion won ($1.78 billion), will hand over its Daewoo Shipbuilding stocks to HHI and purchase around 1.5 trillion won worth of Hyundai Heavy stocks which will be issued later.

The policy investor will also consider extending 1 trillion won in financial assistance to Daewoo Shipbuilding, claim sources. Meanwhile, Hyundai Heavy in return will be split into two entities, with one to be listed on the market.

As per a statement, Lee Dong-gull, Chairman, KDB, said that the deal is part of its efforts to help boost the competitiveness of the country’s shipbuilding industry, and to providing stable job offerings and boosting the local economy.

Reports suggest that Hyundai Heavy Industries Group, with the takeover, will have four affiliates under its wing, namely the Hyundai Samho Heavy Industries, Hyundai Heavy, Hyundai Mipo Dockyard and Daewoo Shipbuilding. Moreover, based on the deal’s outcome, the South Korean shipbuilding industry is expected to be dominated by two major shipbuilders Hyundai Heavy and Samsung Heavy, cite reports.

According to a joint statement, the two Korean shipyards said that DSME’s management structure will remain unchanged, while a joint counseling body will be formed to collect and share views from each stakeholder. Moreover, procedures will be carried out to minimize any possible issue in management formed due to the merger.

The shipbuilders added that a commission dubbed the Korea Shipbuilding Industry Development Commission, comprising of industry, government and academic experts, will be formed to restore the shipbuilding industry’s ecosystem.

  • share
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal    

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More

More News By Mateen Dalal

AstraZeneca to present results of Farxiga’s DAPA-CKD trial at ESC 2020
AstraZeneca to present results of Farxiga’s DAPA-CKD trial at ESC 2020
By Mateen Dalal

According to reliable sources, British-Swedish multinational pharmaceutical company AstraZeneca plc will present the much awaited results of the Phase III DAPA-CKD trial of Farxiga in CKD (chronic kidney disease) at ESC Congress 2020. Sources with r...

FDA grants Emergency Use Authorization to Abbott’s COVID-19 antigen
FDA grants Emergency Use Authorization to Abbott’s COVID-19 antigen
By Mateen Dalal

Abbott Laboratories, a U.S.-based medical devices and healthcare firm, has reportedly received the Emergency Use Authorization (EUA) from the U.S. FDA (Food and Drug Administration) for the detecting COVID-19 virus with its portable antigen test Bina...

Hyundai Wia Corp. signs gun parts export contract with BAE Systems
Hyundai Wia Corp. signs gun parts export contract with BAE Systems
By Mateen Dalal

Hyundai Wia Corp., a South Korea-based defense firm, has reportedly signed gun parts export contract with BAE Systems plc of worth USD 100 million via a pre-value accumulation system. As per the agreement, Hyundai Wia will supply over 106 types of gu...