POSCO Group is conducting a feasibility study to acquire HMM, the largest shipping company in Korea. POSCO has long been mentioned as a strong candidate for acquisition as the privatization of HMM has progressed. Although POSCO has previously indicated no intention to acquire HMM, it is interpreted as a move to secure new growth drivers in line with the business restructuring underway since Chairman Jang In-hwa took office.
According to the business community on the 4th, POSCO has recently assembled an advisory group, including accounting firms and consulting companies, to conduct a feasibility study aimed at acquiring HMM. Since the core business of the steel industry imports materials and supplies such as iron ore and coal using large bulk carriers, the purpose is to evaluate synergies with other businesses such as secondary batteries while reducing logistics costs.
A representative of POSCO Group noted, 'We have been restructuring the group's business as a whole since last year, and in addition, we are discovering new businesses for future growth,' adding, 'The current level is to examine whether HMM's business can generate synergy with the group's core businesses, and a decision on participation in the acquisition has not yet been made.'
Currently, the major shareholders of HMM are the Korea Development Bank (36.02%) and Korea Ocean Business Corporation (KOBC) (35.67%). The sale of HMM made some progress when the Harim Group consortium was selected as the preferred bidder for the acquisition in 2023, but it was halted due to concerns over funding capability and differences in transaction conditions.
POSCO Group has previously distanced itself from acquiring HMM, but as both of the group's major businesses, steel and secondary batteries, have fallen into sluggishness, it appears to have changed its stance. In 2023, when the privatization of HMM was being pursued, POSCO Group stated, 'There is no match at all between our medium-to-long-term business direction and the acquisition of HMM. We are not considering it at all.'