Doosan Bobcat and Doosan Robotics have officially withdrawn their comprehensive stock exchange merger plan, a decision made during emergency board meetings on August 29. The move comes in response to mounting regulatory scrutiny and public opposition, marking a significant setback for Doosan Group’s broader restructuring strategy.
The initial merger plan involved the absorption of Doosan Bobcat by Doosan Robotics, which would have made the former a 100% subsidiary of the latter. The proposal was part of a larger effort to separate Doosan Bobcat from Doosan Enerability and streamline the group’s structure. However, the plan faced significant criticism for allegedly disadvantaging minority shareholders and sparked concerns from financial authorities and political figures.
The Financial Supervisory Service (FSS) had already demanded two revisions to the securities registration statement, further complicating the merger process. Faced with these challenges, the boards of both companies decided to retract the merger plan. This decision nullifies the original proposal to delist Doosan Bobcat and consolidates Doosan Robotics’ 46.1% stake in the company.
Despite the withdrawal, Doosan Group remains committed to restructuring. The group plans to continue with the merger between Doosan Enerability and Doosan Robotics while maintaining Doosan Bobcat as a subsidiary. This restructuring is crucial for Doosan Enerability, which aims to secure significant contracts in the growing global nuclear power market. The group intends to leverage the restructured business to reduce debt and raise funds for future investments, particularly in nuclear power and small modular reactor (SMR) projects.
The Korea Exchange has requested an official disclosure regarding the withdrawal of the merger, with a deadline set for August 30. As the situation evolves, Doosan Group’s strategic focus on smart machines, clean energy, and advanced materials remains clear, despite the challenges faced in executing its initial merger plan.
