Parent company Hyundai Steel Co had laid out plans to take over the core business of its subsidiary Hyundai Hysco Co. This acquisition would result in a new breed of integrated steel maker, making the largest car assembler in the country as its captive customer.
Current Hyundai Motor Group Chairman Chung Mong Koo is currently the biggest individual shareholder in both Hyundai Steel and Hysco. This was confirmed by data compiled by Bloomberg. He also controls the group's other affiliates through a maze of cross shareholding agreements.
The total value of the acquisition would be KRW2.8 triliion or USD2.6 billion. This transaction would be an all-share deal.
The complexity of inter-relations goes into the leadership of the affiliates. Chung Eui Sun is the co-vice chairman of Hyundai Steel. He is Chung's son. Hysco CEO Shin Sung Jae is Chung's son in law by his third daughter.
Hyundai Steel and Hysco are key suppliers in the supply chain that services Hyundai Motor Corp. Hyundai produces coil steel which is sold to Hysco who then presses it into car sheets that is bought by Hyundai Motor Corp.
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