Seoul: Dongwon Industries Co., the holding company of the expansive Dongwon Group, has officially expressed its interest in acquiring HMM Co., South Korea's leading shipping company. This announcement was made in a regulatory filing on Friday, marking a significant potential move for the conglomerate known for its tuna-to-logistics operations.
According to Yonhap News Agency, Dongwon Industries is not alone in its pursuit of HMM. Steelmaker POSCO Group has also emerged as a major contender, expressing interest in the acquisition to potentially create strategic synergies with its core steel business. In a recent filing, POSCO Holdings disclosed that it is evaluating the prospects of acquiring HMM, though no definitive decision has been reached regarding participation in a future auction.
Meanwhile, industry insiders have speculated that an auction could commence following HMM's planned relocation from Seoul to Busan, a move aligned with President Lee Jae Myung's campaign promise to foster balanced regional development. This relocation follows the Ministry of Oceans and Fisheries' recent move to the port city, reinforcing the administration's commitment to regional growth.
Currently, the Korea Development Bank (KDB) and the Korea Ocean Business Corp. (KOBC) hold substantial stakes in HMM, with 35.42 percent and 35.08 percent, respectively. In late 2023, these state-run entities designated a consortium led by Harim Corp. as the preferred bidder for HMM. However, negotiations fell through in February the following year due to unresolved differences.
Dongwon Group, which also owns U.S.-based canned tuna producer StarKist Co., is exploring the acquisition as part of its strategic expansion efforts. The outcome of this potential acquisition remains uncertain as both Dongwon Industries and POSCO Group navigate the intricacies of the bidding process.