Doosan Robotics Inc. will complete its merger with Doosan Bobcat Inc. by early next year, according to Doosan Group. The merger is part of a strategic move to leverage Bobcat’s resources for expanding Doosan Group’s business through mergers and acquisitions (M&A), with potential investments worth several billion dollars.
Prior to the merger, Doosan Robotics will acquire Bobcat as a wholly owned subsidiary to facilitate a smoother merger process, ensuring compliance with contracts and administrative procedures. This restructuring will exempt Bobcat from fair trade regulations that currently require it to fully own any company it acquires.
Earlier this month, Doosan Corp. announced that Doosan Robotics would acquire a 100% stake in Bobcat from Doosan Enerbility Co. through a tender offer. Doosan Enerbility, the conglomerate’s intermediary holding company, focuses on power plant engineering and holds a 46% stake in Bobcat.
Bobcat, a key player in the construction machinery sector, reported 1.39 trillion won in operating profit in 2023 and holds 1.8 trillion won in cash and cash equivalents. Despite this financial strength, regulatory constraints have hindered its ability to pursue M&A opportunities.
Doosan Robotics, a leader in collaborative robot manufacturing, has about 380 billion won in cash reserves. The merger will integrate Bobcat’s extensive global sales network, including 1,500 dealerships, enhancing the global reach and brand recognition of Doosan Robotics.
Industry experts believe that the merger will invigorate Bobcat’s incorporation of advanced technologies like autonomous driving and AI, which has lagged in recent years. The expanded capabilities and resources will allow Bobcat to venture into new fields and innovate more effectively.
As part of the broader corporate restructuring, Doosan Enerbility will split into two entities: an ongoing business concern and a new investment firm that will hold the 46% stake in Bobcat before the merger. This move will help Enerbility reduce its debt burden by offloading 720 billion won in debt to the new investment firm and raising 1.2 trillion won through the sale of non-core assets.
Doosan Group’s reshuffle aims to focus its core businesses on clean energy, smart machines such as robots, and semiconductors and advanced materials, positioning itself for future growth in these high-potential sectors.
