Machinery / Industrial Parts & Tools

Mergers and acquisitions have always been a hot spot in the market and a major trend in the development of the industry. In August, many acquisition cases occurred in the industry: Hyundai Heavy Industries acquired Doosan Construction Machinery for 850 billion won, Danfoss officially completed the acquisition of Eaton’s hydraulic business for 3.3 billion US dollars, and Ritchie Brothers acquired European auction company Euro Auctions.

On August 3, Danfoss officially completed the acquisition of Eaton’s hydraulic business for US$3.3 billion. This acquisition will double the scale of Danfoss’ hydraulics business, and the Danfoss Group’s business scale will expand by one-third, and it will become the mobile and industrial hydraulics field. Global leader.

On August 9, Ritchie Brothers announced that it had reached an acquisition agreement with Euro Auctions (European auction company) to complete the acquisition of Euro Auctions in the first quarter of 2022. The two companies together have more than 88 years of industry experience. This time they work together to provide services to customers in a more powerful way.

On August 20, Hyundai Heavy Industries officially acquired Doosan Construction Machinery, which is undoubtedly a major focus in the host business circle. In the future, the two brands will jointly become the top players in the global construction equipment market, working hard for Hyundai Heavy Industries' goal of squeezing into the top five in the world. So, how far is Hyundai Heavy Industry from the goal of the world's top five?

According to the "2021 Yellow Table" list of the top 50 global construction machinery manufacturers in 2021, Hyundai Heavy Industries ranked 21st with sales of 2.345 billion U.S. dollars, and Doosan Infracore ranked 10th with sales of 7.109 billion U.S. dollars. Just simply adding up sales, slightly surpassed Zoomlion, which is now ranked fifth ($9.449 billion). In simple terms, Hyundai Heavy Industries is expected to reach the number one Korean brand and the fifth place in the world. Whether it can achieve the goal depends on how strong the “chemical reaction” effect of Hyundai’s acquisition of Doosan is and how other brands are growing. .

In addition, looking at China, a huge market where the "army strategist must contend", the acquisition will also stir up the brand competition pattern in the Chinese market. From the perspective of the market share distribution of excavator brands in 2020, after the merger of Hyundai and Doosan in the Chinese excavator market share, it will likely become the second largest foreign brand after Caterpillar and the top five in the Chinese market.

Whether it is the increasingly competitive international market or the Chinese market where the living space of foreign brands is constantly being eroded, the two major Korean brands, Hyundai and Doosan, have joined forces for warmth. By complementing each other's advantages in production, procurement, sales and other links, and integrating superior business resources, it can stabilize its position and obtain greater competitive advantages. We will wait and see whether Hyundai Heavy Industries will be among the top five in the world.