Hankook & Company announces completion of merger with Hankook AtlaxBX
- To maximize synergy effect and enhance new growth engines by integrating capabilities in response to the rapidly-changing automotive industry
- Hankook & Company to lead investments for discovering new business opportunities and bolstering competitiveness of key businesses
- Hankook AtlasBX to transform into a smart energy solution company beyond a lead-acid battery maker
Seoul, Korea, March 31, 2021 – Hankook & Company Co., Ltd., the holding company of Hankook Tire & Technology Co., Ltd., will complete the merger with Hankook AtlasBX Co., Ltd. by April 1 to officially announce its transformation into an operating holding company. Hankook & Company will bolster the competitiveness of key businesses while discovering new business opportunities.
The two companies decided on the merger to seek new growth opportunities by integrating their capabilities and resources to maximize synergy amid the crisis in the auto industry. Currently, a rapid paradigm shift is being undergone in the auto industry, with COVID-19 pandemic, expansion of protectionism, slowed growth of the market and the replacement of internal combustion engine cars to eco-friendly cars.
Hankook & Company plans to maximize business efficiency by implementing integrated management strategies for reducing management costs as well as engaging in efficient allocation and share of physical and human capital. The company hopes to create synergy by expanding the business, investing, securing new technologies, and facilitating M&A capacity using networks owned by the company.
The merger will enable Hankook & Company to secure a stable investment source as an operating holding company. Hankook & Company will work to establish a flexible and rapid decision-making structure and actively lead the investment to strengthen its core business competitiveness and discover new businesses.
The company also plans to build mid-to-long-term strategies to effectively respond to changes in the business environment, enhance management efficiency through smart resource management, and improve its competitiveness in a rapidly-changing global business environment by strengthening its integrated brand portfolio that leverages the global brand 'Hankook.'
In the meantime, the business that Hankook AtlasBX Co., Ltd. was running will be able to operate more reliably through restructuring to Energy Solution (ES) Business Headquarters of Hankook & Company. Hankook AtlasBX has been steadily generating profits in the lead-acid battery business and leading the battery industry growth both qualitatively and quantitatively. Hankook AtlasBX was the first in Korea to unveil a maintenance free(MF) battery and its exceptional technology led to the successful development of an absorbent glass mat(AGM) battery.
Upon the merger, Hankook & Company’s brand value, networking, and M&A capabilities will be added to the solid foundation of Hankook AtlasBX business to expand its next-generation battery technology, manpower, and source of demand. Hankook & Company aims to become a ‘Smart Energy Solution Provider’ who pioneers the future energy era beyond a lead-acid battery producer.
While continuing quantitative and qualitative investment to strengthen the global competitiveness of tires which is the company’s core business, Hankook & Company will diversify its investment portfolio into mobility and future technology-based industries to contribute to enhancing shareholder value and implement shareholder return policies accordingly.