Hyundai Merchant Marine HMM acquires new SK Shipping
According to several media reports, HMM, South Korea's largest liner company, is planning to consolidate its position in the South Korean Shipping industry by acquiring SK Shipping, a leader in the country's energy transportation sector.
According to the report, HMM has been selected as the preferred bidder to acquire a controlling stake in SK Shipping. The deal is now in the due diligence phase.
Some media believe that a challenge for HMM's acquisition is the non-competitive agreement for its LNG transportation business.
There has been speculation that HMM may proceed with the deal without acquiring SK Shipping's 12 LNG carriers. As a result, HMM is expected to acquire SK Shipping's 22 oil tankers, 14 LPG carriers, 10 bulk carriers and seven fuel refueling vessels for $1.4 billion.
The industry believes that the acquisition is in line with HMM's strategic goal of expanding beyond container transportation.
On September 10, 2024, HMM announced a "Major Investment Plan for 2030" that will invest a total of 23.5 trillion won (about $17.6 billion) by 2030 to promote sustainable development, further expand its business footprint, and accelerate its transformation into a global green shipping and logistics service provider.
According to HMM's long-term strategic plan, the investment will cover four major areas, including container transportation, dry bulk transportation, integrated logistics business and enhancing competitiveness.
Kim Kyung Bae, president and CEO of HMM, said at the time: "While we continue to improve the quality of our services, we will also focus on developing a resilient business portfolio and solidifying HMM's position as a global leader in green shipping."
According to the report, HMM has been selected as the preferred bidder to acquire a controlling stake in SK Shipping. The deal is now in the due diligence phase.
Some media believe that a challenge for HMM's acquisition is the non-competitive agreement for its LNG transportation business.
There has been speculation that HMM may proceed with the deal without acquiring SK Shipping's 12 LNG carriers. As a result, HMM is expected to acquire SK Shipping's 22 oil tankers, 14 LPG carriers, 10 bulk carriers and seven fuel refueling vessels for $1.4 billion.
The industry believes that the acquisition is in line with HMM's strategic goal of expanding beyond container transportation.
On September 10, 2024, HMM announced a "Major Investment Plan for 2030" that will invest a total of 23.5 trillion won (about $17.6 billion) by 2030 to promote sustainable development, further expand its business footprint, and accelerate its transformation into a global green shipping and logistics service provider.
According to HMM's long-term strategic plan, the investment will cover four major areas, including container transportation, dry bulk transportation, integrated logistics business and enhancing competitiveness.
Kim Kyung Bae, president and CEO of HMM, said at the time: "While we continue to improve the quality of our services, we will also focus on developing a resilient business portfolio and solidifying HMM's position as a global leader in green shipping."
