HMM’s Total Terminal International Algeciras in Spain (HMM)
HMM’s Total Terminal International Algeciras in Spain (HMM)

Posco Group is considering acquiring HMM, South Korea’s only deep-sea container shipping giant, with a market capitalization of 23 trillion won ($16.5 billion), as it seeks to create synergy with its steel and battery materials businesses.

According to media reports Friday, Posco Group has compiled an advisory team comprising Samil PwC, Boston Consulting Group and a major law firm to evaluate the business potential of HMM.

Posco Group reportedly plans to acquire the stake held by Korea Development Bank, one of the major shareholders of HMM, alongside Korea Ocean Business Corporation. Currently, KDB and KOBC hold 36.02 percent and 35.67 percent of HMM, respectively. However, following a treasury share buyback slated for mid-September, both their stakes are expected to decrease to the low 30 percent range.

Posco Group aims to purchase KDB’s stake, valued at approximately 7 trillion won, to become the largest shareholder of HMM. As of the second quarter, Posco Holdings — the parent holding company of Posco Group — reported cash and cash equivalents of about 7 trillion won, indicating sufficient funds for the acquisition, according to sources.

A spokesperson from Poco Holdings said, “Since last year, Posco Group has been restructuring its overall business portfolio, actively pursuing new growth engines alongside its core steel and rechargeable battery businesses under the ‘2 Core+ New Engine’ strategy.”

“Currently, the group is evaluating HMM’s growth potential and possible strategic synergies but has not yet decided on whether to proceed with an acquisition.”

Recognizing the need for a breakthrough amid a slowdown in its core steel and battery materials sectors, Posco Group Chairman Chang In-hwa has been advancing a strategic initiative to develop future growth areas that complement the company’s existing key businesses.

Industry insiders note that acquiring HMM could resolve long-standing logistics inefficiencies for Posco, which spends approximately 3 trillion won annually on logistics for coal, steel and battery materials imports. Ownership of HMM would secure stable procurement of raw materials and product exports despite external disruptions.

Additionally, this potential acquisition would mark Posco’s return to the shipping industry after nearly 30 years, following the sale of its shipping arm to Hanjin Shipping in 1995.

With Posco’s interest in the bid, the likelihood of HMM’s sale has increased, attracting other contenders such as HD Hyundai Group and Hanjin Group.

Meanwhile, the privatization process of HMM officially began in early 2023. Since then, KDB and KOBC have engaged advisory teams and initiated efforts to sell their controlling stakes. However, the process has faced delays due to the collapse of negotiations with Harim Group and other challenges.


hyejin2@heraldcorp.com