HD Hyundai Heavy Industries and HD Hyundai Mipo announced that the approval of merger agreement agenda item was passed with 98.54% and 87.56% approval from attending shareholders, including the National Pension Service, at their respective extraordinary shareholders’ meetings held on Oct. 23.

HD Hyundai Heavy Industries and HD Hyundai Mipo announced in August that they would pursue a merger to lead the K-defense industry, secure ultra-gap technology, and expand their market. Last month, the Fair Trade Commission approved the merger, judging that the business restructuring between the two companies would not change the governance structure as it is a merger between affiliates and would have little impact on competition.

This business restructuring by HD Hyundai Group is a strategic measure to maximize business synergy through quantitative and qualitative expansion and to maintain a unique advantage in global competition by preemptively developing cutting-edge technologies. HD Hyundai Heavy Industries plans to expand its influence in the global market by combining its naval ship construction technology know-how with HD Hyundai Mipo’s docks, facilities, and human capabilities suitable for warship construction.

The company also expects to secure ultra-gap technology and increase orders in the special-purpose vessel market. The integrated HD Hyundai Heavy Industries will actively respond to strengthening global environmental regulations by reducing risks and costs associated with technology development by consolidating the research and development (R&D) and design capabilities of both companies. It also plans to expand opportunities to enter the special-purpose vessel market, including icebreakers.

The integrated HD Hyundai Heavy Industries aims to achieve sales of 37 trillion won (including 10 trillion won in the defense sector) by 2035, nearly doubling its growth compared to last year (19 trillion won). An official from HD Hyundai Heavy Industries said, “We will continue to lead the future shipbuilding market by combining the capabilities and know-how of both companies.”

Source: BusinessKorea