Hanhil Cement, Hanhil Hyundai Cement Merger... Securing Industry's Top Position

[Financial News] Hanhil Cement and Hanhil Hyundai Cement will be reborn as a single entity 'Hanhil Cement' through a merger on November 1. The two companies held board meetings on the 17th and announced the merger plan.
This merger is being pursued as a strategy to maximize management efficiency and strengthen market dominance amid construction market uncertainties and intensified industry competition. The main objectives are to reduce duplicate investments and costs, combine assets and infrastructure, expand market share, and enhance shareholder value by resolving duplicate listings.
The merger will proceed by issuing new shares to Hanhil Hyundai Cement shareholders by the surviving entity, Hanhil Cement. The merger ratio is 1 to 1.0028211 shares. After the merger is completed, the integrated Hanhil Cement's sales are expected to reach 1.7 trillion won in 2024. The market share of Portland cement is also expected to exceed 20%, securing the top position in the industry.
Hanhil Cement acquired Hyundai Cement through HLK Holdings, which was jointly established with LK Investment Partners in 2017. Subsequently, through the exercise of call options and the absorption merger of HLK Holdings, Hyundai Cement was incorporated as a subsidiary, and as of 2021, Hanhil Hyundai Cement holds a 77.78% stake through market purchases and capital conversion.
The two companies have been promoting substantial integration work such as △joint use of production facilities △integration of organizational culture △sharing of know-how. They plan to fully realize synergies with this merger.
Jeon Geun-sik, President of Hanhil Cement, said, "With this merger, we expect to maximize management efficiency by reducing duplicate investments and external costs for cement production," and "We will strive for sustainable growth through management efficiency."

jimnn@fnnews.com Shin Ji-min Reporter