Ship Engine Manufacturer
HD Korea Shipbuilding & Offshore Engineering, the mid-level holding company of Hyundai, has announced that it will acquire STX Heavy Industries.
On July 31, HD Korea Shipbuilding & Marine Engineering signed a principal contract with private equity firm PINETREE Partners to acquire STX Heavy Industries.
According to the contract, HD Korea Shipbuilding & Offshore Engineering will acquire 6,524,174 shares of STX Heavy Industries held by PINETREE Partners and 5,364,670 new shares issued through third-party allocation for 813 billion won (US$636 million).
With this acquisition, HD Korea Shipbuilding & Offshore Engineering becomes the largest shareholder of STX Heavy Industries, holding a 35% stake.
STX Heavy Industries’ main business areas are ship engines and shipbuilding materials. HD Korea Shipbuilding & Offshore Engineering saw the growing demand for ship engines and took the opportunity to strengthen its capabilities by jumping into the acquisition.
Through this acquisition, HD Korea Shipbuilding & Offshore Engineering expects to further consolidate its position in the ship engine market by securing the production capacity of various output engines, strengthening the competitiveness of key components, and expanding exports through business synergy.