HD Hyundai Heavy Industries and HD Hyundai Mipo, both subsidiaries of HD Korea Shipbuilding & Offshore Engineering (HD KSOE), have received board approval for a merger to strengthen their presence in the global maritime defense industry.

Their integration as HD Hyundai Heavy Industries will take effect on Dec. 1.

HD Hyundai said Thursday that a shareholders’ meeting held earlier in the day approved the merger by a majority vote. The meeting followed the two companies’ announcement in August of their plan to merge, aiming to strengthen defense capabilities, develop new technologies and expand their presence in global markets.

HD Hyundai Heavy Industries and HD Hyundai Mipo, both subsidiaries of HD Korea Shipbuilding & Offshore Engineering (HD KSOE), have received board approval for a merger to strengthen their presence in the global maritime defense industry.

Their integration as HD Hyundai Heavy Industries will take effect on Dec. 1.

HD Hyundai said Thursday that a shareholders’ meeting held earlier in the day approved the merger by a majority vote. The meeting followed the two companies’ announcement in August of their plan to merge, aiming to strengthen defense capabilities, develop new technologies and expand their presence in global markets.

Last month, the country’s top antitrust regulator, the Fair Trade Commission, approved the merger, saying that it preserves HD Hyundai’s managerial structure and poses no risk to fair market competition.

HD Hyundai said the merger will “maximize synergy by expanding HD Hyundai Heavy Industries in both scale and capability.” The group described the move as a strategic effort to assert leadership in the fiercely competitive global defense industry, where companies race to showcase technological superiority.

Under the merger, the new company will leverage HD Hyundai Heavy Industries’ warship‑building technologies and HD Hyundai Mipo’s expertise in shipyard operations, maintenance equipment and technical workforce.

The merger also targets the global special-purpose vessels market, including icebreakers and ships for offshore energy exploration, search-and-rescue, transport and utility functions. HD Hyundai said the combination of both companies’ technological development capabilities will reduce risks while saving time and costs.

HD Hyundai expects the merger to boost its sales from 19 trillion won ($13 billion) in 2024 to 37 trillion won by 2035.

“Our shareholders have overwhelmingly supported the merger, recognizing its necessity and strategic value. By combining the capabilities and expertise of both companies, we will move closer to leading the global shipbuilding market,” said an HD Hyundai Heavy Industries official.
Source: The Korea Times