Seoul, Korea / Neu-Isenburg, Germany, 11th of November 2024 – Hankook & Company Group (formerly Hankook Tire Group) entered into share purchase agreements (SPA) with Hahn & Company for the acquisition of Hanon Systems on 31 October. The acquisition has been executed through its core business, Hankook Tire & Technology (Hankook Tire). As a result, Hankook & Company Group now holds 54.77 percent of the shares in Hanon Systems.
Strategic acquisition: Hankook expands with automotive supplier Hanon Systems
Hanon Systems Co. Ltd., headquartered in Daejeon, South Korea, is a leading manufacturer of automotive components and one of the world’s largest suppliers of vehicle thermal management systems.
The agreement was finalised 180 days after Hankook & Company Group and Hahn & Company signed a memorandum of understanding (MOU) in May. This landmark transaction, led by Hankook & Company Group’s Chairman Hyunbum Cho, positions Hankook & Company Group advantageously in the future mobility technology sector. The company is expected to rank among South Korea’s top 30 companies, with assets totalling KRW 26 trillion (~17.43 billion euro)1.
Chairman Cho’s strategic approach was key to closing this deal. Over the past decade, he has strategically invested in and validated Hanon Systems, envisioning it as a key component in Hankook & Company Group’s growth as a global high-tech company. With this milestone acquisition, Hankook & Company Group completes its mobility portfolio, which now includes tyres, batteries and thermal-management systems.
New phase as a global high-tech company
Already recognised as major players in the global automotive parts industry, Hankook & Company Group and Hanon Systems are expected to create significant waves throughout the mobility sector with this merger. A company spokesperson stated, “Hankook & Company Group is now beginning a new phase as a truly global high-tech corporation, enhancing our value and global presence.”
Hankook & Company Group and Hanon Systems aim to maximise synergies by integrating resources and technology to drive future growth. Both companies plan to share their global sales networks and consolidate supply chain management (SCM) capabilities, including raw material sourcing. They will also merge their IT infrastructure, business processes and organisational cultures.
“The company will leverage all resources, including the holding company, to maximise synergies with Hanon Systems”, Cho said in a letter to all Hankook & Company Group and Hanon Systems employees informing them of the acquisition. Cho further emphasised, “This acquisition will serve as a pivotal moment for Hanon Systems’ advanced technological capabilities and unique strengths, generating even greater momentum.” He continued, “With the assets of both companies, including personnel and expertise, we will secure the group’s strongest position in the electric-vehicle era.”
Completion of acquisition by the end of 2024
Hankook & Company Group aims to complete the Hanon Systems acquisition by the end of this year. The company announced that prior to signing the final agreement, it received antitrust approval from authorities in the United States, the European Union, Canada, China, Turkey, and Mexico. Once overseas government approvals, including the Foreign Subsidies Regulation (FSR), are completed and payments are made for the shares held by Hahn & Company, the acquisition of Hanon Systems will be finalised.
A representative of Hankook & Company Group said, “Chairman Cho’s innovation management and the employees’ proactive capabilities have led to good results. The company will continue communicating with stakeholders to finalise the remaining procedures and position itself as an innovation leader in the future of mobility technology.”
1) Exchange rate as at 11 November 2024 according to www.oanda.com
