Hanwha Group is reportedly seeking to acquire STX Heavy Industries, a ship engine manufacturer.
The group has recently signed the main contract to acquire Daewoo Shipbuilding & Marine Engineering (DSME). It is pursuing additional M&A deals to increase synergies in its shipbuilding business.
Hanwha is conducting due diligence after participating in a preliminary tender for the acquisition of STX Heavy Industries held in the middle of December, sources say.
STX Heavy Industries produces ship engines and shipbuilding equipment. Pine Tree Partners acquired a 67 percent stake in STX Heavy Industries in 2018 for 98.7 billion won.
Previously, on Dec. 16, Hanwha signed a contract with DSME to acquire 2 trillion won worth of new shares the shipbuilder will issue. If Hanwha takes over STX Heavy Industries, it will be able to achieve a vertical integration from ships to engines.
Source: BusinessKorea
