17 Nov Hyundai Motor Considers Acquiring South Korean Waste Treatment Firm
Hyundai Motor Group’s construction subsidiary, Hyundai Engineering, is bidding for a South Korean waste treatment company owned by KG Group, namely KG Eco Technology Services (KG ETS), as reported by the Korea Economic Daily on November 16, citing people familiar with the matter. Other bidders interested in the environmental energy and new materials businesses include ECORBIT, a waste management platform in South Korea, and E&F Private Equity. EY Han Young, the Korean operation of Ernst & Young, serves as an advisor for the deal, which may be worth up to USD847m.
Hyundai Engineering’s plan to take over the company indicates its strategy to grow into an eco-friendly company given the increasing importance of environmental, social, and governance (ESG) management on the global scale. Hence, the company is increasing investments in energy-saving power plants and next-generation small reactors. The garbage treatment firm, if the deal proceeds successfully, will enable its parent Hyundai Motor to process waste from its subsidiaries, creating synergy regarding environmental protection within the group.