April 20, 2024

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[THE INVESTOR] LG Hausys and Hanwha Chemical may have failed to acquire Continental Structural Plastics, the US vehicle lightweight technology developer, in their separate bids, according to news reports Aug. 24.

LG Hausys, the materials unit of LG Group, and Hanwha Chemical’s affiliate Hanwha Advanced Materials joined the heated bidding war that was estimated at US$700 million early this month.

News reports said their bidding prices were much lower than rivals such as Germany’s BASF, Japan’s Mitsubishi Motors and some Chinese bidders.

Hanwha’s bidding price was estimated at about US$600 million, while the figure for LG was allegedly slightly higher than that.

“Prices of Chinese bidders were higher than expected. It seems difficult for Korean bidders to win the bid,” an unnamed industry source was quoted as saying by Chosun Biz. Chinese bidders were estimated to have offered more than US$800 million.

Continental Structural Plastics produces key lightweight materials for cars such as carbon fiber, supplying parts to global carmakers General Motors, Ford and Chrysler.

The preferred bidder of the deal was expected to be announced within the month.

By Lee Ji-yoon (jylee@heraldcorp.com)