Author Topic: Hyundai Heavy Industries agrees to take over DSME  (Read 853 times)


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Hyundai Heavy Industries agrees to take over DSME
« on: February 01, 2019, 09:41:35 AM »
Hyundai Heavy Industries agrees to take over DSME
Jon Grevatt - Jane's Defence Weekly
31 January 2019
Hyundai's proposed takeover of DSME would create a single dominant naval shipbuilder in South Korea
It remains to be seen whether the government, possibly concerned by a resultant lack of competition, will support the deal
Hyundai Heavy Industries (HHI) has signed a preliminary deal to take over rival shipyard Daewoo Shipbuilding & Marine Engineering, the two South Korean corporations have announced.

Once finalized the acquisition will merge the country's two biggest naval shipyards with estimated combined defence-related revenues of nearly USD2 billion.

The transaction is framed by a memorandum of understanding (MOU) signed on 31 January by HHI and DSME's majority shareholder, the state-run Korea Development Bank (KDB), which holds a 55.7% stake in the company. The deal is expected to be finalised within the next six months and could reach a value of more than KRW2 trillion (USD1.8 billion). However, the scope of HHI's investment in DSME has not yet been agreed.

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