Hyundai Heavy Industries Holdings Participates in Final Bidding for Doosan Infracore Acquisition

[Asia Economy Reporter Park So-yeon] Hyundai Heavy Industries Group has officially entered the bidding for the acquisition of Doosan Infracore.

Hyundai Heavy Industries Holdings announced on the 24th that it has submitted a final bid proposal to participate in the acquisition of Doosan Infracore.

Credit Suisse (CS), the lead sales agent, conducted the final bidding for the 36.07% stake in Doosan Infracore held by Doosan Heavy Industries with the shortlisted candidates.

Earlier, in September, Hyundai Heavy Industries Holdings formed a consortium with financial investor Korea Development Bank Investment (KDBI) and participated in the preliminary bidding for the sale of Doosan Infracore.

While the financial investment industry views Hyundai Heavy Industries Holdings as the most likely acquirer of Doosan Infracore, attention is focused on whether other companies on the shortlist will also participate in the final bidding.

The current shortlist reportedly includes the Hyundai Heavy Industries consortium, GS Construction-Dominus Investment consortium, Eugene Group, MBK Partners, East Bridge, and Glenwood Private Equity.

Some of these companies are said to have decided to forgo participation in the final bidding, considering the contingent liabilities related to the Doosan Infracore China (DICC) lawsuit, which could amount to up to 1 trillion KRW, as a major obstacle to acquisition.

Hyundai Heavy Industries Group believes that acquiring Doosan Infracore will enable it to achieve economies of scale in the construction machinery sector and establish a joint dealer network, thereby enhancing competitiveness in the global market.

If Hyundai Heavy Industries Group acquires Doosan Infracore, the domestic construction machinery market will be reorganized into a 'Big 2' system with Hyundai Construction Equipment and Volvo Construction Equipment.