This article was published on June 25, 2025, at 10:15 a.m. on the ChosunBiz MoneyMove site.
Doosan Group has begun turning the acquisition and merger (M&A) clock busily. This is a completely different situation compared to the time when they were selling Doosan Infracore (now HD Hyundai Infracore) and Doosan Solus (now Solus Advanced Materials) under creditor management due to group borrowings that approached 12 trillion won just before the COVID-19 pandemic. Doosan, which had to focus on survival by reluctantly selling off valuable companies, has returned as a predator in the market.
According to investment banking (IB) industry sources on the 25th, Doosan Group has recently started identifying M&A opportunities through major advisory firms. While assessing the market atmosphere, they are also explaining the desired direction for M&A to receive recommendations for suitable targets.
Doosan is reportedly setting the direction for M&A as a means to achieve effects similar to a business structure reorganization. The first priority is to find a corporation that can generate synergies through a merger with Doosan Robotics. To this end, the target corporation must not only possess economic advantages but also have healthy cash flow to offset the disadvantages of the loss-making Doosan Robotics.
Last year, Doosan attempted to restructure its business structure, but it was thwarted by backlash from minority shareholders and martial law. They planned a partitioning merger to transfer the stake in Doosan Bobcat held by Doosan Enerbility to a subsidiary of Doosan Robotics. The intention was to supplement the insufficient cash of Doosan Robotics with dividends from Doosan Bobcat, thereby securing a vertically integrated structure encompassing machinery, robots, and AI.
The reason Doosan Group can actively pursue acquisitions is due to the impressive performance of its subsidiaries, which has led to ample reserves. As of the first quarter of this year, Doosan's cash equivalents amounted to 3.166 trillion won. While Doosan holds 137.7 billion won in cash equivalents, Doosan Enerbility and Doosan Bobcat hold 2.6 trillion won and 1.77 trillion won in cash equivalents, respectively.
Doosan Bobcat and Doosan Robotics are also undertaking M&A independently. Doosan Robotics is currently conducting on-site due diligence for the acquisition of a solutions engineering company in North America. After internal decision-making and discussions, it is expected to be completed within the third quarter of this year. Doosan Bobcat acquired Doosan Motrol last year and is likely to pursue further acquisitions aimed at vertical integration.
In particular, Doosan Bobcat has recently secured a credit rating of 'AA-·stable' from Korea Ratings, thereby expanding its financing capabilities. It is the first time that Doosan Bobcat, headquartered in North America, has obtained a corporate credit rating in Korea. The industry speculates that obtaining a credit rating, despite already being in a net cash position, is groundwork for M&A.
An official from the IB industry noted, 'In reality, it is not easy to find a target that meets all the conditions that Doosan Group desires, and even if such targets do exist, their valuations are likely to be very high.' However, he added that 'Doosan Group's current financial structure is robust enough to handle targets priced in trillions.'
Doosan Group has overcome crises through intense restructuring every time. During the 'Nakdong River phenol spill incident' in 1991, it survived by selling off its consumer goods businesses, including the cornerstone of the group, OB Beer. The group has faced several crises, including the global financial crisis immediately after acquiring Doosan Bobcat in 2007, the ongoing slump of Doosan Construction since 2013, and the phase-out of nuclear energy that began in 2017.