Overview

• The shipbuilders’ boards approved a restructuring under KoKorea Shipbuilding & Offshore Engineering, with the combined entity to relaunch as HD Hyundai Heavy Industries this year.
• The terms set an exchange ratio of one HD Hyundai Mipo share for 1.04059146 HD Hyundai Heavy share, according to company filings.
• Shares of both companies jumped to record highs after the announcement, with HD Hyundai Heavy up 11.3 percent and HD Hyundai Mipo up 14.6 percent.
• The companies said the consolidation will strengthen shipbuilding and defense capabilities and position the group to lead U.S.–Korea cooperation projects tied to MASGA.
• The integrated company set a defense sales target of 10 trillion won, or about US$7.2 billion, annually by 2035.