In a significant development for South Korea’s construction and equipment sector, Institutional Shareholder Services (ISS) has recommended that investors back the proposed merger of HD Hyundai Construction Equipment and HD Hyundai Infracore. The proxy advisory firm cited operational efficiency, cost synergy, and long-term competitiveness as key reasons for its support.
The merger, planned by HD Hyundai, aims to consolidate its construction and heavy equipment businesses under a unified framework. By bringing the two entities together, the company expects to enhance global competitiveness, reduce overlapping functions, and strengthen research and development capabilities.
Analysts believe that combining the businesses will help HD Hyundai optimize supply chains, improve brand positioning, and achieve economies of scale in international markets. The move comes at a time when global infrastructure investment is rising, and demand for construction machinery is expanding across Asia, the Middle East, and Africa.
ISS’s endorsement is likely to reassure institutional investors ahead of the shareholder vote, adding momentum to the deal. If approved, the merger could mark a new phase of growth for HD Hyundai, enabling it to better compete with global rivals in the construction equipment industry.
