ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Business deals

Hyundai Heavy to buy Daewoo Shipbuilding in industry shake-up

Move comes as South Korean shipbuilders struggle with heavy debts and losses

Daewoo Shipbuilding is one of South Korea's Big Three shipbuilders, but has struggled in recent years. (EPA/Yonhap/Jiji)

SEOUL -- Hyundai Heavy Industries Group has inked a deal to consolidate two of South Korea's biggest shipbuilders as the industry struggles amid heavy debts and growing losses.

HHIG announced on Thursday that it has reached a deal to acquire a controlling stake in rival Daewoo Shipbuilding & Marine Engineering. Under the deal, HHIG will set up a joint shipbuilding venture with state-run Korean Development Bank, Daewoo's largest shareholder. The bank has agreed to transfer its entire 55.7% stake in Daewoo to the joint venture in exchange for 7% stake in the new company, with preferred shares worth 1.25 trillion won ($1.12 billion).

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more