hanwha-abandons-daewoo-shipbuilding-purchase

Hanwha abandons Daewoo Shipbuilding purchase

As the deal falls through, Korea Development Bank is left looking for another buyer in a more challenging market.
January 22, 2009
Korea Development Bank KDB yesterday terminated its agreement with Hanwha Group, which had been set to purchase a majority holding in Daewoo Shipbuilding Marine Engineering DSME, the world's third largest shipbuilder, from the Korean policy bank. The announcement follows three months of wrangling between the two parties over the proposed $4.9 billion acquisition.

Hanwha was expected to pay for DSME by the end of March, but as the economic downturn became ever more severe, Korea's ninth-largest conglomerate found the financing of the deal more difficult than expected. In December, Hanwha asked KDB to delay the deal or accept payment in instalments. The bank provided one more month for the acquirer to find the cash...
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