ISS Backs HD Hyundai’s $5.8 Billion Machinery Merger

Dubai (PlantAndEquipment.com) - Institutional Shareholder Services (ISS) has endorsed the planned merger of HD Hyundai Construction Equipment and HD Hyundai Infracore, calling the deal strategically sound. The proxy adviser pointed to efficiency gains from eliminating overlaps, stronger synergies across product lines, and greater financial flexibility in a capital-intensive industry.

Analysts and credit rating agencies also noted the potential for higher profitability, stronger R&D, and improved purchasing power. If approved at shareholder meetings on September 16, the merger would create a company with around 8 trillion won ($5.8 billion) in annual sales, to be renamed HD Construction Equipment from January 1, 2026.

The combined business will market products under both the Hyundai and Develon brands. Management aims to join the global top 10 by 2030, targeting 14.8 trillion won in revenue through expansion into compact machinery, aftermarket services, electrification, and smart equipment.