The merger of South Korean shipbuilders HD Hyundai Heavy Industries and HD Hyundai Mipo has been approved by shareholders, paving the way for the launch of the combined company, HD Hyundai Heavy Industries, on December 1.
The merger plan passed with 98.54 per cent and 87.56 per cent approval respectively from shareholders attending the extraordinary general meetings of each company on October 23.
Both companies announced their intention to merge in August, with aims to secure advanced technologies, and expand their market presence, among others.
South Korea's Fair Trade Commission approved the merger in September, determining it would not impact competition as it was between affiliates.
The integrated company anticipates the merger will significantly enhance its competitiveness, particularly in the defence sector. The company plans to expand its defence market offering and increase orders for special-purpose vessels by combining HD Hyundai Heavy Industries' naval shipbuilding expertise with HD Hyundai Mipo's facilities and resources.
It added that it also aims to integrate research and development capabilities to reduce development risks and costs and respond faster to environmental regulations.
The combined entity plans to achieve sales of KRW37 trillion ($26.8 billion) by 2035, including KRW10 trillion in the defence sector, nearly doubling the KRW19 trillion recorded in 2024.
An HD Hyundai Heavy Industries official stated, “Shareholders have also recognized the necessity and strategic effectiveness of this merger.”
