Hanwha Group to Merge Defense Affiliates

[Asia Economy Reporter Park Sun-mi] Hanwha Group is pushing for the integration of its dispersed defense affiliates.

According to the industry on the 22nd, Hanwha is promoting the integration of its defense affiliates Hanwha Aerospace, Hanwha Defense, and Hanwha's defense division, and is expected to make a final decision on the integration of defense affiliates through the board of directors next month. The intention is to combine the scattered defense divisions within the group to increase scale and enhance competitiveness.

Although the integration method has not yet been decided, the industry expects that Hanwha Aerospace will absorb Hanwha Defense, which it owns 100% of the shares, and also merge the defense division spun off from Hanwha.

As a result, the entities engaged in defense business within Hanwha Group will be the newly launched integrated corporation and Hanwha Systems, which is excluded from this integration. Hanwha Systems, which operates in defense and ICT businesses, was excluded from this merger as its business direction is related to electronic communications rather than weapons.

Regarding the merger rumors of Hanwha's defense affiliates, Hanwha Aerospace stated in a disclosure, "We are reviewing various options including mergers with affiliates to enhance corporate value," adding, "Although nothing has been finalized, we will re-disclose within one month or at the time when specific details are decided."