Building Tire, Battery, and Thermal Management Portfolio
Entering Top 30 in Business Rankings
Chairman Cho Hyun-beom: "Grow Together as Leaders through Communication and Cooperation"
Korea & Company Group signed the final contract for the acquisition of Hanon Systems, which involved an investment of approximately 1.73 trillion KRW, just six months after starting the acquisition process. With total assets rising to around 26 trillion KRW, the group has entered the top 30 in the business world rankings.
Korea & Company announced on the 1st that it had signed the final acquisition contract, a Stock Purchase Agreement (SPA), with Hahn & Company (Hahn & Co) on the 31st of last month. This comes about 180 days after Korea & Company Group and Hahn & Co signed a Memorandum of Understanding (MOU) for the acquisition of Hanon Systems in May. The total amount Korea & Company invested in this acquisition is approximately 1.73 trillion KRW, including a paid-in capital increase of 365.1 billion KRW. Combining the 25.53% stake purchased from Hahn & Co with the paid-in capital increase and existing holdings, Korea & Company’s stake in Hanon Systems stands at 54.77%.
The acquisition of Hanon Systems by Korea & Company Group is expected to be finalized within this year. The company stated, "Prior to signing the final contract, we have completed overseas merger review approvals in the United States, European Union (EU), Canada, China, Turkey, and Mexico," adding, "The acquisition will be completed once payments for the new shares issued through the paid-in capital increase and the existing shares held by Hahn & Co are made, along with approvals from foreign governments including the Foreign Subsidies Regulation (FSR)."
With this acquisition, Korea & Company has established a portfolio encompassing tire, battery, and thermal management (air conditioning) systems. The strategy is to maximize synergy by integrating Hanon Systems’ resources and technologies to create new growth engines for the future.
First, the companies plan to jointly utilize overseas sales networks and consolidate supply chain management (SCM) capabilities, including raw materials. They will also integrate IT infrastructure, work processes, and organizational culture.
On the day following the signing of the final contract, Chairman Cho Hyun-beom of Korea & Company sent an email to all employees of Korea & Company Group and Hanon Systems, expressing a welcoming message and aspirations related to the merger.
Chairman Cho stated, "The company will do its utmost to create synergy with Hanon Systems by utilizing all resources, including the holding company," and proposed, "Let us continue to grow together as proactive leaders through communication and cooperation, as we have done so far."
He added, "This acquisition will serve as an opportunity for Hanon Systems’ advanced technology and unique capabilities to be leveraged as a greater driving force," emphasizing, "Based on the assets of both companies’ personnel and experience, the group will secure the highest and most solid position in the electric vehicle era."
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