SHARE December 11, 2020
Two Korean construction equipment manufacturers will come together under the same parent, operating as separate independent companies, in a bid from Hyundai Heavy Industries Holdings (HHIH). The conglomerate, parent of Hyundai Construction Equipment (HCE), is moving to acquire a 36-percent controlling stake in Doosan Infracore.
According to a statement from Doosan Infracore North America, the deal would keep the two U.S. suppliers separate:
“Under the terms of the deal, the intent is for Doosan Infracore and HCE to operate as independent companies under HHIH. There are currently no plans to merge HCE or Doosan Infracore. Both companies, along with their people, dealer networks and brands will be kept independent from one another once the sale is final.”
Originally published 9/29/2020; updated 12/11/2020
In early September, Doosan Infracore Co., South Korea’s largest construction equipment maker, announced the opening of preliminary bidding for a controlling stake in its operations. At that time, Hyundai Heavy Industries Group emerged as a top-tier bidder. On December 10th, it was announced that Hyundai Heavy has been selected as the preferred bidder. Respective parties including creditors were informed Thursday morning.
The sale of Doosan Infracore is part of the restructuring process for the beleaguered Doosan Heavy Industries & Construction, which was facing a 4.2 trillion won debt load scheduled to come due before the end of the year. The power plant builder took a major hit when the South Korean government chose to depart from nuclear and coal power.
Hyundai Heavy picked as preferred bidder for Doosan Infracore
Posted : 2020-12-11 11:40
Updated : 2020-12-11 11:40
Hyundai Construction Equipment, an arm of Hyundai Heavy Industries Group, said Dec. 9 they sold a $40 million deal to rising foreign markets, including 30-ton excavators to Russia, shown above. Courtesy of Hyundai Construction Equipment
South Korea s power plant builder Doosan Heavy Industries Construction Co. said Thursday that it has tapped a consortium led by Hyundai Heavy Industries Holdings Co. (HHIH) as the preferred bidder for the sale of its 35.4 percent stake in Doosan Infracore Co.
Doosan Heavy Industries Construction said in an emailed statement it will conclude the deal with the consortium led by HHIH to sell its entire stake in Doosan Infracore. It did not provide a specific time frame.