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Business deals

South Korea's Hanwha inks $1.5bn deal to buy Daewoo Shipbuilding

Defense contractor looks to bolster naval and submarine businesses

A Daewoo shipyard in southeastern South Korea. (Photo courtesy of Daewoo Shipbuilding)

SEOUL -- South Korean conglomerate Hanwha Group has signed a deal to take over Daewoo Shipbuilding and Marine Engineering, the world's third-largest shipbuilder, for 2 trillion won ($1.52 billion).

Daewoo Shipbuilding, which announced the deal in a regulatory filing Friday, will issue new shares to six Hanwha Group companies through a private placement, giving the group a 49.3% stake to become the largest shareholder. Hanwha Aerospace will invest 1 trillion won and Hanwha Systems, a defense equipment company, will invest 500 billion won.

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