- Hyundai Motor Group acquires stake in Hyundai E&C for 4.96 trillion won
- The Group will support Hyundai E&C to become a world-best company
- Synergies among businesses will strengthen the Group’s competitiveness
Hyundai Motor Group officially completed a deal to acquire a controlling stake in Hyundai Engineering & Construction Group (Hyundai E&C group) on April 1, diversifying the Group’s business portfolio and demonstrating its confidence to make Hyundai E&C a world-best construction company.
“Hyundai Motor Group deeply welcomes Hyundai E&C as a family member,” said Mong Koo Chung, Hyundai Motor Group’s Chairman in his first address to Hyundai E&C employees on April 1. “Hyundai Motor Group will focus on nurturing the construction sector as one of the Group’s three core driving forces in the future, along with the automotive and steel sectors. Hyundai Motor Group will make Hyundai E&C a high-value engineering company with enforced engineering, operation and planning capabilities.”
Since chosen as the preferred bidder on Jan. 7, Hyundai Motor Group’s acquisition process has been proceeding smoothly, signing the MOU (Memorandum of Understanding) on Jan. 14 and an SPA (Share Purchase Agreement) March 8. Hyundai Motor Group submitted the final balance of 4.4641 trillion won (Total amount: 4.9601 trillion won*) on April 1, successfully completing its acquisition of a 34.9 percent controlling stake in Hyundai E&C.
* Approximately US$4.6 billion according to currency exchange rates as of April 4 in Seoul.
Hyundai Motor Group announced last October that it would invest 10 trillion won in Hyundai E&C to make it the world-best construction company with orders of 120 trillion won and sales of 55 trillion won by 2020.
Hyundai E&C will be able to take advantage of Hyundai Motor Group’s global competitiveness and its high credibility in overseas markets. Together with Hyundai Rotem, Hyundai E&C will also be able to tap high demand in overseas high-speed rail projects. Through Hyundai E&C, the Group will be able to strengthen its presence in so-called “green growth” areas by efficiently building infrastructure for electric vehicles.
“Hyundai Motor Group’s broad global network spanning across some 190 countries, as well as its global competitiveness in diverse business fields such as steel, rail and finance, will be a great asset to Hyundai E&C. Hyundai Motor Group companies will actively support Hyundai E&C to help it realize its full capabilities,” added Chairman Chung.