- South Korea’s HMM has exited talks to acquire SK Shipping’s tanker and bulker assets due to a valuation mismatch.
- Hahn & Company, SK Shipping’s majority owner, has revoked HMM’s preferred bidder status and will now seek alternative buyers.
- HMM will redirect its focus toward organic growth through a major newbuilding program aimed at significantly expanding its fleet by 2030.
South Korea’s national carrier HMM has officially withdrawn its bid to acquire the tanker and bulk carrier divisions of SK Shipping after prolonged negotiations failed to resolve a substantial valuation gap. With no agreement in sight, Hahn & Company, the majority shareholder of SK Shipping, has ended HMM’s designation as the preferred bidder and will explore other acquisition prospects, according to Splash247.
No Acquisition, Renewed Focus on Newbuild Growth
Following the breakdown in acquisition talks, HMM has decided not to pursue any of SK Shipping’s assets. Instead, the company will intensify efforts to grow its shipping capabilities through newbuilding investments. This decision marks a shift toward internal capacity-building rather than mergers or acquisitions.
Long-Term Expansion Strategy Through 2030
Last September, HMM unveiled a long-term expansion blueprint through the end of the decade, allocating KRW23.5 trillion (approximately $17.48 billion) to significantly scale its operations. The plan includes nearly doubling its container fleet and tripling the size of its tanker and dry bulk fleets by 2030. Specifically, KRW5.6 trillion has been earmarked to expand its dry bulk and tanker segment from 36 vessels to 110 ships, representing a total capacity of 12.56 million deadweight tons (dwt).
Strategic Redirection Amid Market Conditions
HMM’s withdrawal from the SK Shipping deal highlights its strategic recalibration in response to market conditions and valuation challenges. By investing heavily in newbuilds, the company aims to enhance operational efficiency, meet future demand, and solidify its position in the global shipping industry independently of acquisitions.
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Source: Splash247
