HD Hyundai Heavy Industries and HD Hyundai Mipo said on the 23rd that the agenda item to approve the signing of a merger agreement between the two companies passed at their shareholders meetings. The integrated HD Hyundai Heavy Industries will launch on Dec. 1.
The extraordinary shareholders meetings were held in the morning, and 98.54% and 87.56% of attending shareholders of HD Hyundai Heavy Industries and HD Hyundai Mipo, respectively, voted in favor of the agenda item.
The merger of the two companies was announced in Aug. The Fair Trade Commission approved it last month, saying there would be no change in the governance structure and no impact on competition from the merger between the two companies.
HD Hyundai Heavy Industries explained that the merger is a move to maximize synergies through scale, expand markets, and secure a competitive edge by proactively developing advanced technologies.
The company expects strengthened competitiveness in the defense sector as HD Hyundai Mipo's docks and facilities, which are suited for building warships, and its human resources are combined with HD Hyundai Heavy Industries' technical know-how.
In addition, HD Hyundai Heavy Industries plans to pool the two companies' R&D and design capabilities to reduce risks associated with technology development and cut time and expense, enabling a swift response to environmental regulations.
In addition, the companies plan to integrate their diverse track records in special-purpose vessels such as icebreakers to expand market entry opportunities.
Through this, the integrated HD Hyundai Heavy Industries plans to nearly double its 2035 revenue compared with last year's revenue (19 trillion won) to reach 37 trillion won.
A HD Hyundai Heavy Industries official said, "Shareholders also recognized the necessity and strategic utility of this merger," adding, "We will fully marshal the capabilities and know-how of both companies to continue leading the future shipbuilding market."