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A Hyundai Steel plant in Dangjin county, Chungnam Province.
A Hyundai Steel plant in Dangjin county, Chungnam Province.

 

Hyundai Steel is to complete a deal to take over Hyundai Hysco by July 1.

Under the deal, Hyundai Steel will issue new shares and exchange them with those of Hyundai Hysco at a ratio of 1 to 0.8577. In short, the company will offer 0.8577 of its shares for every stock share in Hyundai Hysco to Hyundai Hysco shareholders. 

Through this merger, Hyundai Steel will diversify its business portfolio related to steel pipes and weight reduction and secure the overseas steel service centers owned by Hyundai Hysco at the same time. 

By strengthening the technology of auto steel sheet-making and the ability to manage quality, the company is planning to pro-actively respond to changes in overseas auto steel sheet demand. 

In particular, as the steel pipe and weight reduction sectors are businesses where its materials are important, Hyundai Steel will maximize the synergy of the merger through the development of high-value-added products and the preemptive development of new steel grades. It will foster them as the main business sectors with global competitiveness by strengthening the development of quality and technology.  

Hyundai Steel’s material technology produces next-generation auto steel. Hyundai Hysco owns a lot of overseas steel service centers. As these two companies converge and the new company's overseas sales network expands, the company’s global sales competitiveness is expected to be consolidated further through integrated marketing.  

Once the merger is completed, Hyundai Steel is expected to become a global steel company with assets and sales amounting to 31 trillion won (US$28.4 billion) and 20 trillion won (US$18.32 billion), respectively.

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