Hyundai Heavy Holdings "To Enter Global Construction Equipment Market"... Signed Definitive Agreement to Acquire Doosan Infracore

Doosan Infracore Acquired for 850 Billion KRW (34.97% Stake)
Each Company to Maintain Independent Management and Prioritize Employment Stability

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Heavy Industries Group's holding company, Hyundai Heavy Industries Holdings, and the KDB Investment (KDBI) consortium have signed a final acquisition agreement for Doosan Heavy Industries & Construction and Doosan Infracore.

On the 5th, the Hyundai Heavy Industries Holdings consortium announced that it will acquire 34.97% of Doosan Infracore shares held by Doosan Heavy Industries & Construction for 850 billion KRW. The consortium has been proceeding with the acquisition process for four months, starting with participation in the preliminary bidding for the preferred bidder selection of Doosan Infracore on September 28 last year, followed by the selection of the preferred bidder on December 10, and the signing of a binding MOU on December 23.

Hyundai Heavy Industries Holdings plans to act as a control tower to maximize synergy effects by supporting the independent management systems of each corporation, strengthening the R&D sector, and coordinating overlapping investments to realize economies of scale.

In particular, it has set a goal to elevate the position of both companies, which are ranked as second-tier in the global construction market, to a global top-tier company through focused investment in future technologies such as electric excavators and unmanned automation.

To this end, Hyundai Heavy Industries Holdings is making efforts to secure additional R&D personnel, while also committing to ensuring employment stability for Doosan Infracore employees and maintaining existing business relationships.

Hyundai Heavy Industries Holdings plans to request corporate merger approvals from the domestic Fair Trade Commission and major countries including China, and aims to complete the acquisition process within the third quarter.

Through this acquisition, Hyundai Heavy Industries Holdings will own Doosan Infracore, a leading domestic construction machinery company, and Hyundai Construction Equipment, thereby establishing itself as a national representative company in construction machinery and forming a group portfolio focused on key national industries including shipbuilding, oil refining, and construction machinery.

Chairman Kwon Oh-gap of Hyundai Heavy Industries Holdings said, "I am pleased to welcome the business know-how and excellent talents of Doosan Infracore, the top domestic construction machinery company, but I also feel a heavy responsibility to foster growth," adding, "We will spare no support for investment in future technologies aligned with market trends so that both companies can reach the top-tier position in the global market."