HD Hyundai and Hanwha Seek to Acquire Subic Shipyard for Strategic Expansion
Deal News | Apr 11, 2025 | EIN
HD Hyundai and Hanwha are exploring the acquisition of the Subic Shipyard in the Philippines as part of their strategic expansion into Southeast Asia’s shipbuilding and defense sectors. The shipyard, initially developed by Hanjin Heavy Industries and now under the lease of the Philippine Navy, offers a significant base for maritime operations. This move aligns with HD Hyundai’s ongoing dialogues with the U.S. Department of Defense to bolster its maintenance, repair, and overhaul (MRO) capabilities in the region, while also enhancing eco-friendly initiatives. Concurrently, Hanwha has been aggressively expanding its defense capabilities through acquisitions, highlighted by its recent MRO project for a U.S. naval vessel and its plans to invest heavily in overseas defense and shipbuilding acquisitions. The acquisition not only reflects the companies’ ambitions but also highlights the competitive landscape within the global defense industry, particularly amid geopolitical tensions.
Sectors
- Shipbuilding
- Defense
- Private Equity
Geography
- South Korea – HD Hyundai and Hanwha, the companies involved, are South Korean conglomerates.
- Philippines – The location of the Subic Shipyard, which is central to the acquisition proposal.
- United States – The historical significance of Subic Bay as a former U.S. naval base and its current lease by the Philippine Navy.
Industry
- Shipbuilding – The article discusses the acquisition of a shipyard, which is a significant component within the shipbuilding industry.
- Defense – The involvement of MRO activities and naval vessel support positions both companies within the defense industry sector.
- Private Equity – The mention of Cerberus, a private equity firm, owning the Subic Shipyard highlights its role in the industry.
Financials
- 600 billion won – Issued by HD Hyundai in exchangeable bonds to enhance eco-friendly initiatives and engine production.
- 2 trillion 400 billion won – Investment planned by Hanwha for overseas defense and shipbuilding acquisitions.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| HD Hyundai | Bidding Company | Company | A South Korean conglomerate seeking to expand its maritime operations through the acquisition of Subic Shipyard. |
| Hanwha Group | Bidding Company | Company | A South Korean conglomerate aggressively expanding in the defense sector, targeting acquisitions including the Subic Shipyard. |
| Subic Shipyard | Target Company | Company | A major shipbuilding facility in the Philippines, currently under lease by the Philippine Navy. |
| Cerberus | Current Owner | Company | A U.S. private equity firm that acquired the Subic Shipyard following Hanjin's restructuring. |