This article was published on June 25, 2025, at 10:15 a.m. on the ChosunBiz MoneyMove site.
Doosan Group has actively begun to turn the clock on mergers and acquisitions (M&A). The situation is completely different from when it was selling Doosan Infracore (now HD Hyundai Infracore) and Doosan Solus (now Solus Advanced Materials) under creditor control due to group borrowings that neared 12 trillion won before the COVID-19 pandemic. Doosan, which had to sell solid companies out of desperation to survive, has returned as a predator in the market.
According to investment banking (IB) industry sources on the 25th, Doosan Group has recently started to identify M&A market listings through major advisory firms. It is both gauging the market atmosphere and explaining the desired direction for M&A to receive recommendations for suitable targets.
Doosan is reported to have set the direction for M&A as a measure that could have a similar effect to restructuring the business structure. A company that can generate synergy through a merger with Doosan Robotics is the top candidate. For this to happen, the target company must not only possess an economic moat but also have a strong cash flow to compensate for the weaknesses of the loss-making Doosan Robotics.
Last year, Doosan pushed for a restructuring of its business, but it was thwarted by backlash from minority shareholders and a military emergency. It planned a partitioning merger in which Doosan Enerbility would transfer its stake in Doosan Bobcat to Doosan Robotics, aiming to secure a vertically integrated structure encompassing machinery, robotics, and AI by using dividends from Doosan Bobcat to make up for Doosan Robotics’ insufficient cash.
The reason Doosan Group can actively pursue acquisitions is that its subsidiaries have recorded strong performances, leading to ample resources. As of the first quarter of this year, Doosan's cash-equivalent assets amount to 3.166 trillion won. Doosan Enerbility and Doosan Bobcat also hold cash-equivalent assets of 2.6 trillion won and 1.77 trillion won, respectively.
Doosan Bobcat and Doosan Robotics will also independently pursue M&A. Doosan Robotics is currently conducting on-site due diligence for the acquisition of a solution engineering firm in North America. After internal decision-making and discussions, it aims to finalize this by the third quarter of this year. Doosan Bobcat acquired Doosan Motrol last year and is likely to pursue acquisitions at the level of vertical integration.
Notably, Doosan Bobcat recently secured a credit rating of 'AA-·stable' from Korea Ratings, thereby expanding its fundraising capacity. This is the first time Doosan Bobcat, based in North America, has received a corporate credit rating in Korea. There are observations in the industry that this move to obtain a credit rating, despite already being in a net cash position, is groundwork for M&A.
An IB industry official noted, 'In reality, it will be difficult for Doosan Group to find acquisition targets that fulfill all its desired conditions, and even if they exist, their price will be very high,' adding that 'Doosan Group's current financial structure is solid enough to handle acquisitions in the hundreds of billions.'
Doosan Group has overcome crises time and again through rigorous restructuring. During the 'Nakdong River phenol leak incident' in 1991, it survived by selling consumer goods businesses, including OB Beer, which were its roots. It has faced several crises, including the global financial crisis immediately after acquiring Doosan Bobcat in 2007, the prolonged struggles of Doosan Construction from 2013, and the shift away from nuclear energy that began in 2017.