There is speculation that HMM, which aims to increase its bulk carriers, could resume its bid to acquire Polaris Shipping. HMM plans to invest 5.6 trillion won to expand its bulk fleet from 38 ships to 110 by 2030. Because the bulk carrier institutional sector has not been its core business, HMM has sought to acquire a shipping company for efficient sales, operations, and management.
According to the shipping industry on the 16th, acquiring Polaris Shipping is being cited as an option for HMM's fleet expansion. Polaris Shipping is a bulk carrier operator centered on very large ore carriers (VLOC; Very Large Ore Carrier). By deadweight tonnage (Deadweight Tonnage) capacity, it is the No. 3 carrier in Korea and operates 34 ships.
In bulk shipping, it is common that when a used vessel is acquired, the transport contract performed by that vessel is transferred together. For this reason, the industry believes that acquiring an existing carrier would be more efficient for HMM than purchasing individual used ships and separately adding personnel.
HMM also pursued the acquisition of the SK Shipping business unit with this in mind. SK Shipping operates 54 bulk carriers consisting of petrochemical product carriers, liquefied petroleum gas (LPG; Liquefied Petroleum Gas) carriers, dry bulk carriers, and bunkering vessels. HMM sought to acquire SK Shipping to expand its fleet, but the deal fell through due to a failure to agree on price.
In 2023, HMM also reviewed a plan to participate as an investor in the acquisition of Polaris Shipping. At the time, the Korea Ocean Business Corporation, HMM's largest shareholder, and HMM planned to invest 100 billion won, but the investment was scrapped because HMM's sale was in progress.
Polaris Shipping has stabilized its management by withdrawing the management control sale it was pursuing at the time and issuing corporate bonds. Polaris Shipping is currently not pushing for a sale because it has almost repaid its borrowing fund. The largest shareholder of Polaris Shipping is Pola E&M, which holds 94.13% equity.
If HMM acquires Polaris Shipping, it could achieve 44% of its fleet expansion target. It would also be able to take over long-term transport contracts with companies such as Vale, a Brazilian iron ore exporter.
A shipping industry official said, "I understand that HMM is reviewing the potential effects of acquiring Polaris Shipping," adding, "With the SK Shipping acquisition having fallen through, it is also keeping an eye on other shipping companies focused on bulk carriers." An HMM official said, "We have nothing to confirm regarding the acquisition of Polaris Shipping."