The Korean steel giant is studying a private negotiation to take over Kdb’s shares in the shipping company Hmm
Pohang – According to an exclusive report by the KoreanEconomicDaily, the steel giant Posco is preparing a detailed plan to acquire control of the shipping company Hmm (formerly Hyundai Merchant Marine), over a year after the failure of the previous privatization attempt.
Posco, which did not participate in the government’s public auction in 2023, now seems interested in re-entering the maritime sector in search of new growth sources. The group is facing a slowdown in the steel business, aggravated by US tariffs, and is exploring diversification strategies.
Control of Hmm is currently held by two public entities: the Korea Development Bank (Kdb) and the Korea Ocean Business Corporation (Kobc), which together own over 70% of the capital. Posco would aim to purchase the 36% stake held by Kdb through a private negotiation, thus avoiding a new public auction.
KOobc, according to sources, would retain its stake, co-managing the company together with Posco. However, Korean law requires that the sale of Hmm must take place through a public auction, except for exceptions or special agreements.
In 2024, the offer from the Harim group, selected as the preferred buyer, failed due to a lack of agreement on post-privatization management. In the event of a new public tender, Hd Hyundai Heavy Industries and Hanjin, in addition to Harim itself, could also participate.
Meanwhile, Hmm has launched a diversification strategy beyond container transport. It attempted (unsuccessfully) to acquire Sk Shipping, but continues to invest in bulk carriers, tankers, and car carriers, some of which will be chartered to Hyundai-Glovis. Four multi-purpose cargo ships are also under construction.
