Doosan Bobcat Inc. is in advanced discussions to acquire a majority stake in Wacker Neuson SE, as the South Korean construction equipment maker pursues its most significant transaction since obtaining the Bobcat brand in 2007.
The Munich-based target confirmed Tuesday that talks are underway for Doosan Bobcat to purchase approximately 63% of shares from major shareholders, followed by a public all-cash offer for remaining stock. Wacker Neuson’s current market value stands at about €1.69 billion ($1.96 billion), and the total acquisition price could exceed €2 billion.
Shares in Wacker Neuson jumped 24.5% following the announcement, which was first reported by Bloomberg News.
The transaction would expand Doosan Bobcat’s footprint in Europe, which accounts for 15-20% of the company’s total sales and has delivered an average annual growth rate of 8% over the past four years. Doosan Group Chairman Park Jeong-won has identified the region as a “second home market” essential for sustained growth.
Wacker Neuson, founded in 1848 and headquartered in Munich, specializes in light and compact construction equipment and maintains operations in 35 countries. The company generates annual revenues of approximately €2 billion ($2.3 billion).
Wacker Neuson cautioned that no agreement has been finalized and it cannot predict whether the transaction will proceed.
