Jungheung Group buys Daewoo E&C
13 December 2021
Jungheung Group, comprising of 62 construction companies, has successfully completed the purchase of Daewoo Engineering and Construction (Daewoo E&C). This means that they have become one of the top four builders in Korea, according to a report from Business Korea.
Jungheung was selected as the preferred bidder for the takeover by Daewoo E&C back in July 2021 and five months later have completed the deal.
A stock purchase agreement was signed to take over 50.75% of Daewoo E&C’s shares on 9 December for 2.1 trillion won (US$ 1.8 billion), with the shares being held by Korea Development Bank.
Initially, Jungheung offered just short of US$2 billion for the shares but this was subsequently lowered when it became known that their bid was US$400 million more than the second highest bidders.
Business Korea says that Korea Development Bank came under fire for allowing the re-tender after Jungheung became aware of the bidding gap and cut their price.
Jungheung Group is expected to become Korea’s third-largest construction group by assets.