Hanwha Group is set to expand into naval shipbuilding
DSME has been struggling financially for years, and Hanwha Group is set to take a major stake in the shipbulder. (Photo: DSME)
Hanwha is broadening its portfolio, with a bid to take a controlling stake in shipbuilder DSME likely to proceed.
Hanwha Group of South Korea announced on 26 September that it had signed a conditional MoU to take a managerial controlling stake in Daewoo Shipbuilding & Marine Engineering (DSME).
This was a preliminary agreement to secure a 49.3% stake – worth some KRW2 trillion ($1.4 billion) – in the debt-ridden South Korean shipbuilder.
However, the agreement requires that no other competitive bidder better Hanwha’s offer before a deadline of 17 October.
In 2021, the ailing DSME suffered operating losses amounting to KRW1.7 trillion, and nearly KRW600 billion in the first half of this year. A 51-day strike by DSME subcontracted
Already have an account? Log in
Want to keep reading this article?
Read this Article
Get access to this article with a Free Basic Account
- Original curated content, daily across air, land and naval domains
- 2 free stories per week
- Personalised news alerts
- Daily and weekly newsletters
Unlimited Access
Access to all our premium news as a Premium News 365 Member. Corporate subscriptions available.
- Original curated content, daily across air, land and naval domains
- 14-day free trial (cancel at any time)
- Unlimited access to all published premium news
More from Defence Notes
-
![US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness]()
US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
-
![Can the US overcome Russian and Chinese nuclear capabilities?]()
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
![US FY2024 funding package passes as China closes military capability gap]()
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
![NATO outlines future challenges as Ukrainian funding from US stalls]()
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
![US Pentagon to reduce investments in main acquisition programmes over FY2025]()
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
