Dongkuk Steel Mill decided not to acquire Hyundai IFC, a subsidiary of Hyundai Steel.
Dongkuk Steel Mill noted on the 22nd that, "As part of a strategy to strengthen the competitiveness of our core steel business, we reviewed the acquisition of Hyundai IFC in collaboration with a financial investor (FI), but decided not to proceed with the acquisition."
Previously, Dongkuk Steel Mill had considered acquiring Hyundai IFC with the Korea Development Bank Investment Corp. as the FI. However, concerns about financial burdens arose because Dongkuk Steel Mill decided last month to acquire the Ferrum Tower in Jung-gu, Seoul, for about 645.1 billion won.
The origin of Hyundai IFC is SPP Group's forging company SPP Yulchon Energy (Hyundai Steel's second forging plant), which was established as a subsidiary of SPP Shipbuilding. In 2015, Hyundai Steel acquired the company while it was under court management. Subsequently, Hyundai Steel separated the forging business unit into Hyundai IFC in 2020, making it a wholly owned subsidiary.