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Dongkuk Steel (Photo = Yonhap News file photo) |
[Alpha Biz= Paul Lee] Dongkuk Steel announced on August 22 that it has decided not to proceed with the acquisition of Hyundai IFC, a wholly owned subsidiary of Hyundai Steel, despite previously reviewing the deal with financial investor KDB Investment.
The company explained that the potential acquisition had been considered as part of its strategy to strengthen competitiveness in its core steel business. However, concerns over financial burden ultimately led to the withdrawal. Last month, Dongkuk Steel had already committed to acquiring the Ferrum Tower in Seoul’s Jung-gu district for approximately KRW 645.1 billion (USD 470 million), adding to its financial obligations.
Hyundai IFC traces its origins to SPP Yulchon Energy, a forging company established under SPP Shipbuilding. The company entered court receivership in 2015 before being acquired by Hyundai Steel. In 2020, Hyundai Steel spun off the forging division and established Hyundai IFC as a fully owned subsidiary.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
