이 기사는 2021년 07월 22일 07시44분 thebell에 표출된 기사입니다

A consortium of Hyundai Heavy Industries Holdings (HHIH) and KDB Investment has received a nod from the competition watchdog to acquire a controlling stake in Doosan Infracore, moving a step closer to completing the deal.

The Korea Fair Trade Commission (KFTC) has recently approved Hyundai Genuine’s acquisition of Doosan Infracore, industry sources said on Tuesday. Hyundai Genuine is HHIH’s intermediate holding company, which was established earlier this year to acquire Doosan Infracore.

The consortium signed a deal in February to buy a 23.97% stake in the construction equipment manufacturer from Doosan Heavy Industries & Construction for 350 billion won ($304.6 million).

The deal was subject to review by the KFTC as the combined market share of Doosan Infracore and HHIH’s construction equipment manufacturing subsidiary, Hyundai Construction Equipment, accounts for more than 50% of the domestic excavator market. Doosan Infracore and Hyundai Construction Equipment held a 40% and 20% market share, respectively.

The KFTC seems to have concluded that the acquisition would not reduce competition because there are no barriers to importing excavators into the country, industry watchers said.

The deal also needs approvals from competition authorities in China, Vietnam and Europe. If everything goes well, the deal is expected to close in early August.

After the deal’s closing, HHIH intends to operate Doosan Infracore and Hyundai Construction Equipment independently without merging them immediately, letting them focus on their key markets. Doosan Infracore holds a strong market position in China and Vietnam, while Hyundai Construction Equipment is growing fast in India and Russia.

HHIH will oversee the two companies’ research and development activities and investments to ensure efficient capital management and maximize synergy. (Reporting by Gyu-hee Kim)