The sale of Daewoo Shipbuilding & Marine Engineering (DSME) is the talk of town nowadays as to who will take over the world's third-largest shipyard.
A number of potential contenders have been emerging into the spotlight вАХ GS Group, Doosan, POSCO, SK and Hanwha вАХ who all want a piece as shipbuilding will remain a lucrative business in the years to come.
Above all, GS Group, the country's eighth largest conglomerate by market capitalization, has expressed strong interest and determination to acquire the shipbuilder.
The group firmly believes it has a competitive advantage over other conglomerates such as POSCO and Doosan, saying that their takeover attempts will result in a zero sum game.''
It said, It will be like acquiring a customer, if the steel maker or the heavy machinery firm consolidates DSME, which will only achieve a losing profit relationship."
On the contrary, GS believes its acquisition of the shipbuilder will increase synergy with businesses it holds interest in вАХ energy, engineering and construction.
The deal will be a win-win as both companies can join forces by utilizing expertise of GS in plant construction and energy, and Daewoo in shipbuilding and marine plants,'' a group spokesman said.
Since 2005, the group put GS Holdings at the forefront to set up a team of mergers and acquisitions (M&A) specialists led by its CEO Suh Kyung-suk for the acquisition of DSME.
It has been talking with shipbuilding experts and analysts on ways to win the company and maximize synergy between energy and marine engineering.
In a meeting with executives at the group headquarters in southern Seoul, its Chairman Huh Chang-soo called for gaining a competitive edge through investment once strategic choices are made.
We must push forward to win businesses that have the potential to help the group in developing future growth engine,'' said Huh, showing his full commitment to purchase the shipbuilder.
DSME's controlling shares are held by two state-run creditors вАХ the Korea Development Bank and the Korea Asset Management Corp. вАХ with a combined 50.4 percent stake.
Should the group achieve its takeover goal, GS plans to maximize and strengthen its energy business by utilizing DSME's logistics for the gas and oil industry.
It has an advantage to see it through as GS Caltex, the country's second largest oil refiner, has strong ties with the Middle East where more than 70 percent of the shipbuilder's sales and orders come from.
Also, GS Engineering & Construction has built a strong network in the region through projects involving energy plants.
We will fully utilize such networks to strengthen the role of DSME in the fields of energy-related shipbuilding and marine engineering,'' the group said.
Its tactics to bid for the company includes joining hands with strategic investors both at home and abroad, rather than financial investors.
It noted that it is considering working with strategic investors who trust GS can maximize synergy through the acquisition, and advance the shipbuilder's global competitiveness.
A number of potential contenders have been emerging into the spotlight вАХ GS Group, Doosan, POSCO, SK and Hanwha вАХ who all want a piece as shipbuilding will remain a lucrative business in the years to come.
Above all, GS Group, the country's eighth largest conglomerate by market capitalization, has expressed strong interest and determination to acquire the shipbuilder.
The group firmly believes it has a competitive advantage over other conglomerates such as POSCO and Doosan, saying that their takeover attempts will result in a zero sum game.''
It said, It will be like acquiring a customer, if the steel maker or the heavy machinery firm consolidates DSME, which will only achieve a losing profit relationship."
On the contrary, GS believes its acquisition of the shipbuilder will increase synergy with businesses it holds interest in вАХ energy, engineering and construction.
The deal will be a win-win as both companies can join forces by utilizing expertise of GS in plant construction and energy, and Daewoo in shipbuilding and marine plants,'' a group spokesman said.
Since 2005, the group put GS Holdings at the forefront to set up a team of mergers and acquisitions (M&A) specialists led by its CEO Suh Kyung-suk for the acquisition of DSME.
It has been talking with shipbuilding experts and analysts on ways to win the company and maximize synergy between energy and marine engineering.
In a meeting with executives at the group headquarters in southern Seoul, its Chairman Huh Chang-soo called for gaining a competitive edge through investment once strategic choices are made.
We must push forward to win businesses that have the potential to help the group in developing future growth engine,'' said Huh, showing his full commitment to purchase the shipbuilder.
DSME's controlling shares are held by two state-run creditors вАХ the Korea Development Bank and the Korea Asset Management Corp. вАХ with a combined 50.4 percent stake.
Should the group achieve its takeover goal, GS plans to maximize and strengthen its energy business by utilizing DSME's logistics for the gas and oil industry.
It has an advantage to see it through as GS Caltex, the country's second largest oil refiner, has strong ties with the Middle East where more than 70 percent of the shipbuilder's sales and orders come from.
Also, GS Engineering & Construction has built a strong network in the region through projects involving energy plants.
We will fully utilize such networks to strengthen the role of DSME in the fields of energy-related shipbuilding and marine engineering,'' the group said.
Its tactics to bid for the company includes joining hands with strategic investors both at home and abroad, rather than financial investors.
It noted that it is considering working with strategic investors who trust GS can maximize synergy through the acquisition, and advance the shipbuilder's global competitiveness.