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.”
Final negotiations should be wrapped up by year-end, with the sale expected to be finalized in mid-2021, according to Doosan NA.
According to reports published by Korean media, HHIH is offering about $827.8 million. Korean antitrust regulators must approve the deal.
According to Maekyung Media Group, the deal will “create greater synergies” in areas of the globe other than the United States, noting Doosan’s Chinese presence and Hyundai strength in India and Russia.
