South Korea: Hyundai Cement up for sale

Hyundai Cement Co. is expected to put up for sale this year. Despite only having a small market share in South Korea, the upcoming sale is expected to bring about change in the local cement market that is fiercely competitive.

Currently, South Korea’s cement market is dominated by seven major companies who hold a 90 per cent market share. Of these, Hyundai Cement ranks seventh, holding 7.38 per cent of the market share, but despite its lower position its sale will likely be a game changer for the industry that is tightly controlled by Ssangyong Cement Industrial Co (28.8 per cent market share) and Hanil Cement Co (21.2 per cent market share).

In terms of parties interested in purchasing the company, it is expected to be a battle between private equity funds and competing cement makers. PEF Hahn & Co is a likely bidder, as it has already acquired multiple cement makers, including Ssangyong Cement, Daehan Cement and Hannam Cement. United Asset Management Company (UAMCO),a non-performing asset investment firm, also expressed interest in the buyout. No cement makers have expressed interest as of yet, but Asia Cement and Hanil Cement both have ample liquidity to be possible contenders.