Doosan Bobcat is in talks to acquire Wacker Neuson, a German construction equipment-maker, in a move that could expand the South Korean industrial machinery builder's presence in Europe.
Wacker Neuson confirmed earlier media reports on Tuesday, disclosing that its executive board is in “advanced discussion” with Doosan Bobcat regarding a possible acquisition of a majority stake in the company. It added that Doosan Bobcat is considering purchasing about 63 percent of the company’s share from major shareholders and launching a public all-cash takeover offer to acquire the remaining shares.
Doosan Bobcat on Wednesday said in a regulatory filing that it is currently reviewing the acquisition, but no decision has been made or confirmed. The company, a core machinery arm of Doosan Group, added that it would provide an updated disclosure when specific details are finalized, or within one month.
Industry sources say the two sides have been in talks for more than a year and are nearing the final stages of a potential transaction. Wacker Neuson’s current market value stands at about 1.69 billion euros ($1.96 billion), and the total acquisition price could exceed 2 billion euros. If confirmed, it would mark the second-largest deal by Doosan Group, following Doosan Infracore’s $4.9 billion purchase of Bobcat in 2007.
Headquartered in Munich and founded in 1848, Wacker Neuson specializes in light and compact construction equipment and maintains operations in 35 countries. With yearly revenues of approximately 2 billion euros, industry analysts project the firm will post sales of 2.3 billion euros for 2025.
Doosan Bobcat’s pursuit of the deal is widely viewed as part of its aim to diversify its North America-heavy business portfolio by bolstering its foothold in Europe. The company could tap Wacker Neuson's well-established network and strong market position in Germany, Austria and across Europe to accelerate its regional growth.
Doosan Bobcat already operates a production base in the Czech Republic, along with manufacturing facilities in Germany and France. In October, the company established a new German subsidiary to further expand its presence in the European market.
sahn@heraldcorp.com
