Hanwha denies report on acquisition talks with DSME

[THE INVESTOR] Hanwha Group on Aug. 30 denied a news report that it was considering acquiring the defense business of cash-strapped shipbuilder Daewoo Shipbuilding & Marine Engineering.

“We have never considered the acquisition,” the defense giant said in a regulatory filing.

Earlier in the day, a local news daily, reported that Hanwha has recently started a feasibility study on the possible acquisition, including business synergies and the bidding price. 

The ailing shipbuilder logs about 1 trillion won (US$900 million) from defense business that includes building battle ships and submarines. Amid the ongoing restructuring, creditor banks are also considering selling the lucrative business to a third entity.

DSME, the second-largest shipbuilder globally, is currently financially struggling, hit by falling ship prices amid a global economic slump. In the first half of this year, the company posted an operating loss of 449.9 billion won.

By Lee Ji-yoon (jylee@heraldcorp.com)