Hankook & Company, the holding company of South Korea’s largest tyre manufacturer Hankook Tire and Technology, has reached a preliminary agreement to acquire an additional 25% stake in Hanon Systems, the country’s leading manufacturer of automotive heat management systems, according to local reports.

Hanon Systems is a major global manufacturer of battery thermal management systems, as well as HVAC systems for both ICE and electric vehicles, competing with the likes of Denso, Mahle and Valeo.

Hankook already had a 19.5% stake in Hanon which it acquired in 2014 for KRW1.8trn (US$1.3bn). The company signed a memorandum of understanding (MoU) this week to acquire a further 25% stake in Hanon for KRW1.37trn (US$1bn) from private equity firm Hahn & Company which is currently Hanon’s largest shareholder with a 50.5% stake it acquired for KRW2.75trn in 2015.

Hankook had also agreed to invest an additional KRW365bn in Hanon Systems through the purchase of new shares. The two transactions would increase Hankook’s stake in Hanon to 50.5%, giving it majority control, while Hahn & Co’s shareholding would fall to 22% making it Hanon’s second largest shareholder.

The deal was also strategic, as it was expected to strengthen Hankook Tire’s exposure to the global electric vehicle segment. Hanon’s customers include Hyundai Motor Group, Volkswagen, BMW, Mercedes-Benz and Ford.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.