Hyundai Rotem (064350.KS) will acquire the special business division of affiliate Hyundai Wia (011210.KS) for 358.4 billion won ($247 million), a deal that gives the rolling stock and defense maker direct control of large-caliber gun production. Both companies are units of Hyundai Motor Group.
Hyundai Rotem disclosed the acquisition in a regulatory filing on the 19th. The transaction covers the entire business of Hyundai Wia's special business division, including its operating assets and liabilities tied to defense operations. The price was set at 358.386 billion won, derived from the division's business value of 480 billion won minus 117 billion won for land and buildings that will instead be leased, along with other adjustments.
Hyundai Wia's special business division produces large-caliber guns, including barrels for the K9 self-propelled howitzer and the main gun for the K2 tank. Hyundai Rotem said the decision was aimed at vertical integration in defense, securing competitiveness through business diversification and strengthening future growth drivers.