Editor’s note: This report has been updated to include additional information on Bobcat’s exclusion in this deal, per media reports.
Fulfilling earlier rumors, the Korean powers Hyundai and Doosan Group have reached a deal that will see Hyundai agree to buy a controlling stake of Doosan’s Infracore equipment division by the end of the year, according to the Korea Economic Daily and other media outlets.
Hyundai Heavy Industries Holdings is buying a 36% controlling stake of Doosan Infracore, a division of Doosan Group comprised of both Doosan’s own brand of machines and those of the Bobcat brand which it acquired in 2007. The sale is expected to be finalized in mid-2021.
Bobcat is not part of the Doosan Group/HHIH agreement, says Business Korea. Earlier reports this fall indicated that parent Doosan Group was unwilling to part with the profitable U.S. brand.
Notably, Doosan Bobcat and Doosan Infracore North America separated their businesses in 2018, after operating together for seven years. Doosan Infracore purchased Bobcat in 2007.
Doosan-branded machines will be owned by Hyundai under the deal. The deal, however, doesn’t mean that North American customers will see a combined Hyundai/Doosan market presence, Doosan Infracore North America told Equipment World in a statement.
