Doosan Bobcat withdrew its acquisition of German construction equipment maker Wacker Neuson.
Doosan Bobcat disclosed on the 23rd that it had reviewed acquiring equity in the German construction equipment corporations Wacker Neuson SE but decided not to proceed.
Initially, Doosan Bobcat proposed acquiring a 63% equity stake from the major shareholder in Wacker Neuson and making a tender offer in the market for the remaining equity. The expected purchase price, including the controlling stake, was about 2 billion euros (about 3.4 trillion won), reflecting a 17.6% premium compared with Wacker Neuson's market capitalization of 1.7 billion euros as of Dec. 3, when Doosan Bobcat issued an explanatory disclosure related to the acquisition.
Doosan Bobcat reviewed the Wacker Neuson acquisition to target the European market. Wacker Neuson holds the largest market share in Europe's compact construction equipment market. Seventy-eight percent of its sales come from Europe. Doosan Bobcat ranks around fifth by European market share. It has a key production base in the Czech Republic and in October last year established a local subsidiary in Germany to prepare for expansion in Europe.
Wacker Neuson is a construction equipment specialist manufacturer founded in 1848. It has strengths in areas such as compact construction equipment. It operates direct sales and service organizations and a dealer network in more than 35 countries worldwide. Annual revenue is 2 billion euros (about 3.44 trillion won), and its market capitalization is about 1.4 billion euros (about 2.4 trillion won).
Doosan Bobcat said it carefully reviewed the matter from the perspective of optimal capital allocation for mid- to long-term growth and maximizing financial performance and made this strategic judgment, adding that there is no change in its strategic direction to achieve top-line growth through mergers and acquisitions (M&A).