Progressing through the intense battleground of corporate bidding, Hapag-Lloyd, an esteemed name in shipping, has found itself left out of the running for the South Korean flagship carrier, HMM. A pool of sources within South Korea circulates the news that the homegrown creditors—Korea Development Bank (KDB) and Korea Ocean Business Co (KOBC)— have penned their decision to exclude the foreign bidder, Hapag-Lloyd from the privatization course of HMM.
National Interests Over Corporate Acquisitions
Arguments have surfaced that a potential Hapag-Lloyd acquisition of HMM might trigger an overseas exodus of valuable national assets. Stated as the cause for concern were the invaluable domestic treasures like the maritime logistics acumen honed over many years and proficient management of container transportation and terminal systems. This assertion was put forth in a joint statement by the Federation of Korea Maritime Industries and the Busan Port Development Council released recently.
Domestic Players Enter the Race
Joining the competition are several Korean enterprises, showing a glimmer of resistance against international acquisitions. Spearheading this collective effort is Harim Group, a giant in the local shipping industry, that controls the Korean line Pan Ocean. Pairing up with a local private equity firm, they’re throwing their hat in the ring, alongside LX Holdings and Dongwon Group, two local corporations with a strong footing in the logistics field.
Moving Forward: The Transition Process
As the bidding race intensifies, the subsequent steps involve due diligence by the concerned bodies. An announcement of the preferred bidder is anticipated by the dawn of November. The urgency of the creditors—the KDB and KOBC—is evident as they express their desire to finalize the sale by the end of this year.
HMM: A Prize Worth Fighting For
HMM stands as the leading shipping company in South Korea boasting a diverse fleet. It comprises 88 container ships, five bulk carriers, and ten oil tankers, in addition to four heavy-lift ships. The company also holds a feather in its cap with three PCTCs currently under construction, adding to its impressive portfolio. With such a bounty at stake, it’s no wonder that the race for HMM’s acquisition is heating up.
