South Korean conglomerate Hanwha Group has signed a deal worth 2 trillion won ($1.53 billion) to buy a controlling stake in compatriot LNG shipbuilding giant Daewoo Shipbuilding and Marine Engineering.
Pending approvals, Hanwha would have a 49.3 percent stake in DSME while Korea Development Bank would have a 28.2 percent stake in the shipbuilder, making the bank the second largest shareholder.
Hanwha said in a statement that via the deal its six subsidiaries would own a stake in DSME, including Hanwha Aerospace, Hanwha Systems, and Hanwha Impact.
DSME and Hanwha signed the initial deal in September and after that Hanwha conducted detailed due diligence.
Following completion of the acquisition, Hanwha would be able to “lay the foundation for its growth as a truly global defense company by having a land, sea, and air integrated system.”
Hanwha also expects to enter new markets by developing ships that can operate autonomously.
In addition, Hanwha’s energy sector capabilities, including LNG, ammonia, hydrogen, and wind power, would be combined with DSME’s energy production facilities and transportation technology to establish a “new green energy value chain”, the firm said.
Hanwha said that it would probably take more than three months to secure domestic and foreign approvals for the acquisition.
The firm expects to complete the deal in the first half of 2023.
This year, DSME set a record for the largest number of orders for LNG carriers in a year since its establishment, surpassing its yearly record of 37 LNG carriers in 2014.
In total, the shipbuilder won orders worth about $10.4 billion this year, including orders for six LNG-powered containerships and 38 LNG tankers.