Hyundai Close To Doosan Infracore Stake?

South Korea’s Hyundai Heavy Industries Group (HHIG) is part of a group that has been selected as the preferred bidder for Doosan Infracore and is close to acquiring a 36.07% stake in the company.

HHIG’s bid for Infracore, the construction business of Korea’s Doosan Group, is estimated to be around $555.8 million. The potential acquisition does not include Doosan’s Bobcat Division, which accounted for 57% of Infracore’s revenue in 2019.

Doosan Group is reportedly looking to sell the Infracore business to alleviate a debt load rumored to be in the neighborhood of $3.6 billion.

If HHIG’s offer goes through, it would move Hyundai into the top 15 of global construction equipment manufacturers. HHIG’s partner in the acquisition is a division of the Korea Development Bank, a state-run financial institution.

Others still reportedly in contention to acquire the share of Infracore are private equity firms MBK Partners and Glenwood Private Equity.