HMM is currently discussing the final procedures, such as employment succession, with a goal of completing the acquisition of some business divisions from SK Shipping by June.
According to the shipping industry on the 18th, HMM has recently completed the due diligence for the acquisition of SK Shipping and is negotiating employment succession plans with SK Shipping. HMM is said to be succeeding the employment of all maritime staff from SK Shipping, while indicating that only some of the land staff will be retained. In response, the SK Shipping labor union has conveyed to management its position that it wants guarantees for full employment succession.
HMM was selected as the preferred negotiator related to the acquisition of some assets from SK Shipping in January and has been conducting negotiations. Initially, HMM was expected to complete the due diligence by last month and present the acquisition plan for some business divisions of SK Shipping to the board this month, but the schedule has reportedly been delayed due to the change of the CEO.
HMM is expected to acquire some business divisions of SK Shipping, including tanker vessels, liquefied petroleum gas (LPG) vessels, and bulk carriers. It is reported that the proposed acquisition price for these divisions is in the range of 2 trillion won.
SK Shipping has been pushing for the sale of the entire business division, but it seems that the liquefied natural gas (LNG) vessel sector will be excluded. This is because HMM, during its time with Hyundai Merchant Marine, sold its LNG business division and, under a non-compete clause, is prohibited from operating in the same sector until 2029.
If HMM acquires the tankers, gas carriers, and bulk carriers from SK Shipping, it is expected to reduce performance volatility. Currently, about 85% of HMM's revenue is concentrated in the container shipping sector, which is significantly affected by market fluctuations.
An SK Shipping official said regarding the sale process, 'There are no confirmed decisions yet.' An HMM official also stated, 'Nothing has been finalized yet.'