DSME bidding hotting up

Hyundai Heavy Industries Co., the world’s largest shipbuilder, is reportedly ready to spend as much as 8.5 trillion won ($7.54 billion) to take over Daewoo Shipbuilding & Marine Engineering Co (DSME). Last week, Hyundai Heavy, POSCO, GS Group and Hanwha Group submitted letters of intent for the acquisition of the world’s third-largest shipbuilder, which will amount to this year’s biggest deal.

In a further development, SK Energy, South Korea’s top refiner, is considering joining in a consortium to be formed by POSCO, the nation’s No.1 steel maker, in bid to takeover DSME. “No detailed decision has been made as to whether we will take part in the consortium and how much we will spend on it if we do, though we are considering POSCO’s request to participate as a financial investor,” an SK Energy official said.

The state-run Korea Development Bank (KDB), which heads the DSME sale, along with a government asset management unit, are to sell a 50.4 % stake in the shipyard, estimated to fetch as much as 7 trillion won ($6.45 billion).