South Korea: Sungshin Cement will become the new owner of bigger rival Halla Encom Corporation, a ready-mixed concrete (RMC) manufacturer from Halla Corporation, by purchasing an 85% stake in it for US$49.3m.
Sungshin said that it had signed a share purchase agreement by forming a consortium with BCH Peregrine Investment, a private equity fund, to take over Halla Encom. It said that that the purpose of the sale was to improve its financial soundness and raise funds for new businesses.
Halla Encom ranked seventh among South Korea’s eight RMC producers in 2017, producing 3.44Mm3 of concrete. Sungshin Cement was eigth, with shipments of 1.91Mm3. The combined entity is expected to become the third largest producer of RMC in South Korea, larger than Ssangyong Remicon (5.34Mm3) Sampyo Industry (7.59Mm3) and Eugene Corporation (7.5Mm3).