Hyundai Heavy held talks with Daewoo Shipbuilding to buy stake – official

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South Korean shipbuilding giant, Hyundai Heavy Industries Group, is interested in buying a stake in rival Daewoo Shipbuilding & Marine Engineering, a Hyundai official told Reuters on Wednesday.

State-funded Korea Development Bank (KDB) holds a 55.7 percent stake worth 2.16 trillion won (1.48 billion pounds) as of Wednesday’s closing price in Daewoo.

“Hyundai Heavy held talks to buy the Daewoo stake,” the official said, without elaborating further.

Hyundai Heavy Industries Group is the world’s biggest shipbuilder, followed by Daewoo.

South Korea’s online media Yonhap Infomax said Hyundai Heavy submitted a letter of intent to the KDB to buy a stake in Daewoo, citing the government.

A KDB spokesman declined to comment.

Hyundai Heavy Industries Holdings said on Monday it planned to sell part of its stake in refiner Hyundai Oilbank to Saudi Aramco for as much as 1.8 trillion won.

Source: Reuters