Hyundai Genuine can acquire Doosan Infracore: FTC

Hyundai Genuine's logo [HYUNDAI HEAVY INDUSTRIES HOLDINGS]

The Fair Trade Commission (FTC) on Tuesday approved Hyundai Genuine, the parent company of Hyundai Construction Equipment, acquiring 34.4 percent of Doosan Infracore, a construction machinery maker, for 850 billion won ($760 million).

The antitrust regulators on Tuesday announced the acquisition will not limit market competition.

Their combined market shares for excavators total 51.2 percent and 66 percent for wheel loaders in Korea, according to the FTC.

It added that the supply of excavators and wheel loaders in Korea exceed demand, so companies won’t be able to raise prices based on their market shares.

Hyundai Genuine was established in February to acquire the stake in Doosan Infracore.

Following the FTC announcement, Hyundai Genuine announced its ambition to become one of the top five construction equipment makers globally.

As of 2019, Hyundai Construction Equipment had 1.5 percent of the market and Doosan Infracore 2.1 percent, according to UK market research company Yellow Table.

If combined, they would rank ninth globally.

Hyundai Genuine appointed Kwon Oh-gap, Chairman of Hyundai Heavy Industries Holdings, and Cho Young-cheul, President of Korea Shipbuilding Offshore & Engineering, as co-CEOs of the company on Tuesday.

BY JIN MIN-JI [jin.minji@joongang.co.kr]