Hyundai Heavy Industries-led consortium and Eugene Group go after the 36.1 percent stake in Doosan Infracore Co., the heavy equipment unit of South Korean conglomerate Doosan Group, by entering exclusive negotiations as other contestants chose to bow out for more assurance from due diligence.

In the final tender that closed on Tuesday, Hyundai Heavy-KDBI consortium and Eugene Group submitted bids for the controlling stake in Doosan Infracore offered by Doosan Heavy Industries & Construction.

Others candidates have not joined the final bid, citing the lack of data required for due diligence and the lingering uncertainty over Doosan’s ongoing lawsuit with local PEFs over its Chinese unit Doosan Infracore China (DICC).

They added that they were not giving up their bid, but needed more time for due diligence.

Six contenders had submitted letters of intent, including GS Engineering & Construction-Dominus consortium and PEFs such as EastBridge Partners, Glenwood PE and MBK Partners.

Still, Hyundai Heavy Industries or Eugene will likely end up with the stake if not for a sudden event.

Hyundai Heavy Industries has been eager in the acquisition from the beginning. It has construction equipment unit Hyundai Engineering & Construction Co. that commands a 1.5 percent share, 20th largest in the market, as of 2018. The addition of Doosan Infracore whose global market share is the ninth largest 3.7 percent would raise company’s global share to 5.2 percent on par with Volvo Construction Equipment with 5.2 percent.

Eugene Group, which engages in construction materials business, is hoping to create immediate synergy from vertical integration.

Doosan Group plans to name the preferred bidder by the end of the year.

Doosan Infracore shares fell 2.39 percent to 8,580 won in Seoul at 10:22 a.m. Wednesday, and Doosan Heavy Industries & Construction down 0.33 percent to 15,250 won.

By Kang Doo-soon, Kang Woo-seok and Lee Ha-yeon

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]