Hanwha Pursues Acquisition of STX Heavy Industries Following Daewoo Shipbuilding & Marine Engineering Takeover

Hanwha Group Headquarters Building Exterior View

[Asia Economy Reporter Jeong Dong-hoon] Hanwha Group, which recently signed a final contract to acquire Daewoo Shipbuilding & Marine Engineering, is reportedly pursuing the acquisition of STX Heavy Industries, a manufacturer of ship engines.

According to industry sources on the 26th, Hanwha participated in the preliminary bidding for the acquisition of STX Heavy Industries around mid-month and is currently conducting due diligence. It appears that the group is seeking additional mergers and acquisitions (M&A) to create synergies in the shipbuilding industry.

The acquisition target is 47.81% of STX Heavy Industries shares held by the domestic private equity fund (PEF) Pine Tree Partners. STX Heavy Industries is a company engaged in ship engines and shipbuilding equipment business, and Pine Tree Partners acquired 67% of the shares in 2018 for 98.7 billion KRW.

Earlier, on the 16th of this month, Hanwha signed a new share subscription contract to participate in a 2 trillion KRW paid-in capital increase for the acquisition of Daewoo Shipbuilding & Marine Engineering.

A Hanwha Group official responded, "There is no information we can confirm."