Doosan Heavy Industries Agrees Acquisition of Mitsui Babcock

Mitsui Babcock, the UK-based multi-specialist energy services company, has said that its Parent company, Mitsui Engineering & Shipbuilding, has signed an agreement to sell 100% of the Mitsui Babcock business to Doosan Heavy Industries (UK) Limited, for JPY 20 billion (approx £100m). Completion of the deal is expected by January 2007.

Doosan Heavy Industries (UK) Limited is a subsidiary of Doosan Heavy Industries & Construction, the South Korea-based engineering and construction company. Upon completion of the deal Mitsui Babcock will be known as Doosan Babcock. Doosan Babcock will remain an independent, UK based company, with offices and employees throughout the UK and across mainland Europe, Asia and the USA. With the combined and enhanced expertise resulting from the deal, the company will focus on global opportunities in major power plant engineering, procurement and construction projects and aftermarket services to the energy industry.

Yasu Katoh, Chief Executive of Mitsui Babcock says, "There are truly exciting times ahead for Doosan Babcock as part of a group that has the scale and ambition to become one of the major international players in the power plant field. By uniting with an organisation solely dedicated to the energy sector we are confident the Company will achieve its full potential in a global power market offering significant growth opportunities."

Nam-doo Lee, President and CEO of Doosan Heavy Industries & Construction says, "We are delighted to be joining forces with Mitsui Babcock. Their unparalleled expertise in utility boilers and aftermarket services perfectly complements our portfolio of products and services and will help us realise our goal of becoming the global number one company in the power industry."

Doosan Heavy Industries & Construction Co., Ltd. of South Korea is one of the largest heavy industry companies in Korea. The Company was established in 1962 and to date has built over 300 nuclear, thermal, combined cycle and hydro power plants and is currently building more than 60 power plants in Korea, USA, India, China and elsewhere. Doosan is fast becoming an EPC contractor as a result of continuous investments and R&D, while also developing wind power systems, fuel cells and environmentally friendly next-generation energy. Doosan Heavy Industries & Construction is listed on the Korean Stock Exchange and has annual revenues of some $3.3Bn.

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Posted 13/11/06

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