Aims to Become a Top-Tier Player in Global Markets
The Hyundai Heavy Industries Holdings (HHIH)-KDB Investment (KDBI) consortium announced on Feb. 5 that it has signed the main contract with Doosan Heavy Industries & Construction to take over Doosan Infracore. HHIH is the holding company of Hyundai Heavy Industries (HHI) Group.
The consortium will take over a 34.97 percent stake in Doosan Infracore from Doosan Heavy Industries & Construction for 850 billion won.
HHIH plans to support independent management of each subsidiary and serve as a control tower to maximize synergies by strengthening the R&D sector and coordinating overlapping investments.
HHI Group plans to create synergies by establishing a joint dealer network. Doosan Infracore holds a 3.7 percent share of the global construction equipment market, the ninth largest, while Hyundai Construction Equipment, a subsidiary of HHI Group, holds a 1.5 percent share, standing 20th. Their combined market share is similar to that of the world's fourth-largest Volvo Construction Machinery (5.2 percent).
HHI Group has set the goal of making the two companies a top-tier player in the global construction market by heavily investing in future technologies such as electric excavators and unmanned and automation machines.
HHIH will ask the Korea Fair Trade Commission and major countries such as China to approve the acquisition of Doosan Infracore and plans to wrap up the acquisition process within the third quarter of 2021.