Regulator OKs takeover of Doosan Infracore by Hyundai Heavy

South Korea's antitrust regulator said Tuesday it has approved a deal by an affiliate of Hyundai Heavy Industries Holdings Co. (HHIH) to buy Doosan Infracore Co., the country's largest construction equipment maker.

In February, HHIH inked a deal to acquire a 35 percent stake in Doosan Infracore for 850 billion won ($735 million) from its cash-strapped parent, Doosan Heavy Industries & Construction Co.

In April, Hyundai Genuine Co., a wholly owned unit of HHIH, took over the parent's stake in Doosan Infracore.

The Korea Fair Trade Commission said it has given the green light to the proposed deal as it is not likely to hurt market competition.

The regulator said the approval of the deal will help Doosan Heavy smoothly proceed with its corporate restructuring process and Hyundai Genuine strengthen competitiveness in the construction equipment market at home and abroad.

South Korea's 15th-largest conglomerate, Doosan Group, has been seeking to sell its shares and assets to improve its financial structure and repay debts held by the flagship unit Doosan Heavy Industries & Construction in return for a 3.6 trillion-won lifeline from state-run banks. (Yonhap)