[Alpha Biz= Kim Jisun] HMM’s planned acquisition of SK Shipping has collapsed, as the two sides failed to narrow a significant valuation gap.



According to industry sources on August 1, SK Shipping’s largest shareholder, Hahn & Company, terminated HMM’s status as the preferred bidder. While Hahn & Company and market analysts valued SK Shipping at ₩2–4 trillion, HMM’s offer was reportedly in the ₩1 trillion range, leaving a wide pricing discrepancy.



HMM had sought to lower the acquisition cost by excluding SK Shipping’s LNG carrier division, instead planning to acquire its crude oil tanker, LPG carrier, and bulk carrier operations. This approach stemmed from restrictions: HMM’s predecessor, Hyundai Merchant Marine, sold its LNG division to IMM Private Equity and agreed to a non-compete clause through 2029.



Since being acquired by Hahn & Company in 2018, SK Shipping has significantly improved performance, securing new long-term contracts with Hyundai Oilbank, GS Caltex, and QatarEnergy. As of the end of 2024, long-term contracts accounted for 87% of SK Shipping’s business, driving operating profit up more than fivefold to ₩395.7 billion and EBITDA to ₩640.9 billion.



The deal’s collapse also coincides with HMM’s recent leadership change — CEO Choi Won-hyuk took office in March, prompting a strategic review of the acquisition.



HMM had announced in September 2024 that it would invest ₩23.5 trillion by 2030 in new businesses, seeking to diversify beyond its container shipping focus through M&A in bulk, crude oil, and gas carrier segments.



Despite the failed SK Shipping deal, HMM is expected to continue pursuing opportunities to broaden its fleet and reduce reliance on container shipping.

 

 

 

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