Hyundai Motor dismisses rumor on HMM takeover

Hyundai Motor Group denied rumors that it could seek a takeover bid to save faltering shipper Hyundai Merchant Marine via its logistics arm Hyundai Glovis.

HMM, which faces a liquidity crisis, is a key affiliate of Hyundai Group and so has been categorized as a member of the pan-Hyundai empire. 

“It is true that the group was invited to a takeover bid for the shipper, but the group has no interest in the deal due to little synergy effect,” a high-ranking official of the automotive group said Monday.

The official made it clear that the Korean automotive group will put its business priority in enhancing competency in its core auto business beyond the “octopus-style” business expansion in the past.

Despite the denial, market watchers said Hyundai Motor Group is still a strong candidate in the incoming takeover bid for HMM, given that Hyundai Glovis, a shipper of cars, could transform into a major shipper when the container shipping business of HMM is added after the merger.

The family connection between Hyundai Motor Group chairman Chung Mong-koo and Hyundai Group chairwoman Hyun Jeong-eun.

Hyun is the wife of the late Hyundai Group chairman Chung Mong-hun, a younger brother of Hyundai Motor Group chief. She left the board of HMM to be responsible for the shipper’s deepening liquidity crunch last week.

By Seo Jee-yeon (jyseo@heraldcorp.com)