Hyundai Rotem Acquires Hyundai Wia Defense Unit, Strengthening Vertical Integration
Hyundai Rotem is moving to strengthen vertical integration across its ground weapons systems by acquiring the defense business of its affiliate Hyundai Wia. Hyundai Rotem announced on Oct. 19 that its board had approved the acquisition of Hyundai Wia’s Special Business Division for 358.39 billion wo
Hyundai Rotem has acquired the defense business of its affiliate Hyundai Wia, a move aimed at strengthening vertical integration and consolidating defense capabilities within the Hyundai Motor Group. The acquisition, valued at approximately $269.1 million, includes the operating assets, liabilities, employees, and intellectual property rights of Hyundai Wia's Special Business Division, which specializes in large-caliber artillery.
The deal is expected to improve Hyundai Rotem's cost competitiveness, expand its product range, and enhance its ability to meet localization requirements in export markets. Hyundai Wia, on the other hand, plans to focus on future mobility businesses, such as hybrid vehicle engines and automotive thermal management systems, with the proceeds from the sale.
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