South Korea’s national carrier HMM has officially withdrawn its bid to acquire the tanker and bulker assets of SK Shipping, ending months of discussions after a persistent valuation gap made the deal untenable. SK Shipping’s majority owner, Hahn & Company, has terminated HMM’s status as preferred bidder and will seek new bidders.
Both parties were unable to bridge pricing expectations. As a result, HMM has opted not to pursue acquisition of any SK Shipping assets, refocusing its strategy instead on expanding capacity through newbuilding orders.
Last September, HMM unveiled expansion plans through to the end of the decade, setting aside a massive KRW23.5trn ($17.48bn) that will see its container fleet nearly double while its tanker and dry bulk fleets will triple in size come 2030. KRW5.6trn has been earmarked to expand the company’s dry bulk and tanker business from 36 ships to 110 vessels of 12.56m dwt.
