[Market Highlight] Doosan Bobcat Jumps Over 6% on News of Possible Acquisition of German Construction Equipment Firm

Doosan Bobcat showed strong performance in early trading on December 3. The buying momentum appears to be driven by news that the company is seeking to acquire Wacker Neuson, a German construction equipment manufacturer.

As of 9:15 a.m. on this day, Doosan Bobcat shares were trading at 60,100 won on the Korea Exchange, up 6.37% from the previous trading day. The stock opened at 59,600 won and at one point during the session surged to as high as 62,200 won.

On December 2 (local time), Wacker Neuson announced that Doosan Bobcat is discussing a plan to acquire a 63% stake in Wacker Neuson and to conduct a public tender offer for the remaining shares. Wacker Neuson, founded in 1848, is a specialized construction equipment manufacturer operating direct sales, service organizations, and dealer networks in more than 35 countries worldwide. Its annual revenue is approximately 2 billion euros (about 3.4164 trillion won), and its market capitalization on the Frankfurt Stock Exchange stands at around 1.4 billion euros (about 2.4 trillion won).

If the acquisition is completed, Doosan Bobcat is expected to secure a sales network in the European market through Wacker Neuson.

However, Wacker Neuson stated that it is currently uncertain whether major shareholders will actually sell their stakes or whether the public tender offer will proceed.