South Korea’s Hanwha inks deal to take over DSME

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.

Most Popular

Shell wraps up acquisition of Pavilion Energy

UK-based LNG giant Shell has completed its previously announced acquisition of Singapore's Pavilion Energy.

India’s ONGC approves Mozambique LNG investment

India’s state-run ONGC has approved an investment by its unit, ONGC Videsh, into the TotalEnergies-led Mozambique LNG joint venture, which is developing a 12.8 mtpa liquefaction plant at the Afungi complex.

Australia’s Viva Energy seeks FSRU for Geelong project

Australia’s Viva Energy is looking to secure a floating storage and regasification Unit (FSRU) for its proposed LNG import terminal in Geelong, Australia.

More News Like This

Hanwha Ocean starts work on Nakilat’s LNG carrier

South Korean shipbuilder Hanwha Ocean has officially started building Nakilat's first of eight LNG carriers under the massive QatarEnergy shipbuilding program.

Hanwha Ocean delivers 200th LNG carrier

South Korea's Hanwha Ocean has delivered its 200th liquefied natural gas (LNG) carrier.

Evergreen orders LNG-powered vessels in South Korea and China

Taiwan's shipping firm Evergreen Marine has ordered ultra-large LNG-powered containerships at two yards in South Korea and China.

Hapag-Lloyd to add more LNG-powered containerships to its fleet

Germany's Hapag-Lloyd is expected to add more LNG dual-fuel container vessels to its fleet with a new order at South Korea's Hanwha Ocean, according to shipbuilding sources and brokers.