The Hanwha Group has acquired Daewoo Shipbuilding & Marine Engineering. If subsequent measures, such as licensing procedures, proceed as planned, the final acquisition is expected to be completed in the first half of next year.
On the 16th, the government confirmed the agenda for the signing of the main investment attraction contract between Daewoo Shipbuilding & Marine Engineering and Hanwha Group in a meeting of ministers related to strengthening industrial competitiveness presided over by the Deputy Prime Minister of Economy and the Minister of Strategy and Finance Chu. Kyung-ho.
Hanwha Group and Daewoo Shipbuilding & Marine Engineering also announced the acquisition of shares through public disclosure.
Daewoo Shipbuilding & Marine Engineering announced on the same day that it had signed a separate new stock acquisition contract with Hanwha affiliates such as Hanwha Aerospace as set out in the investment agreement on 26 September.
Daewoo Shipbuilding & Marine Engineering explained, “According to the investment agreement, we designated the acquirers as conditional investors for the capital increase paid in, and the acquirers were confirmed as final investors in a competitive bid (stalking horse method) and set by the company.”
However, for the contract to close, it must go through domestic and international licensing procedures, including approval from the competition authorities. Eight countries subject to business combination reviews include the Korea Fair Trade Commission, the European Union (EU), Japan, China, Singapore, Turkey, Vietnam, and the United Kingdom.
In addition, the approval of the Minister of Trade, Industry and Energy to sell defense companies under the Defense Acquisition Act and permission for foreign investment under the Foreign Investment Promotion Act are also prerequisites.
The submission of resignations by all registered directors of Daewoo Shipbuilding was also included as a condition for the completion of the contract.
After signing the contract and completing the licensing process, Hanwha Group will invest 2 trillion won in new funds to acquire the new shares of Daewoo Shipbuilding, securing a 49.3% stake in management rights and becoming the largest shareholder in Daewoo Shipbuilding. KDB’s share will be reduced to 28.2% (2nd largest shareholder). The final acquisition is expected to be completed in the first half of next year.
With the signing of this contract, Hanwha is about to complete an integrated land, sea and air system that encompasses the existing ‘space and land’ defense business to the sea.
Hanwha is developing a private merchant vessel capable of autonomous navigation by combining advanced marine system technology with DSME’s ability to mass produce ships, or developing environmentally friendly ships by using Hanwha’s environmentally friendly energy storage system (ESS) technology, which is in use. to submarines. We also intend to jump in.
There is a high possibility of establishing a new green energy value chain by combining Hanwha’s energy field capabilities, such as LNG, ammonia, hydrogen and wind power, with Daewoo Shipbuilding & Marine Engineering’s energy production facilities and transport technology fields.
The global export network is also expanding, and the export market has been greatly expanded. Sharing customer networks in the Middle East, Europe and Asia is expected to increase exports of submarines and combat ships, flagship products of Daewoo Shipbuilding & Marine Engineering, as well as Hanwha weapon systems.
