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• Hankook & Company Group finalized a share purchase agreement (SPA) with Hahn & Company to acquire Hanon Systems on Oct. 31
• With assets now totaling KRW 26 trillion, the group has secured a place among Korea’s top 30 conglomerates, reshaping the industry landscape
• The acquisition elevates Hyunbum Cho from a second-generation owner to a bold, value-driven strategist, as the acquisition creates substantial synergies
• Strives to lead the global market while cultivating a proactive culture that values every member and generates meaningful impact

Seoul, Korea, November 5, 2024 — Hankook & Company Group (formerly Hankook Tire Group) entered into share purchase agreements (SPA) with Hahn & Company for the acquisition of Hanon Systems on Oct. 31. The acquisition has been executed through its core business, Hankook Tire & Technology (Hankook Tire). As a result, Hankook & Company Group now holds 54.77% of the shares in Hanon Systems. 

The agreement was finalized 180 days after Hankook & Company Group and Hahn & Company signed a memorandum of understanding (MOU) in May. This landmark transaction, led by Hankook & Company Group’s Chairman Hyunbum Cho, who has evaluated Hanon Systems for a decade, positions Hankook & Company Group advantageously in the future mobility technology sector. The company is expected to rank among South Korea’s top 30 companies, with assets totaling KRW 26 trillion.

Chairman Cho’s calm and strategic approach was key to closing this deal. Over the past decade, he has strategically invested in and validated Hanon Systems, envisioning it as a key component in Hankook & Company Group’s growth as a global high-tech company. With this milestone acquisition, Hankook & Company Group completes its mobility portfolio, which now includes tires, batteries, and thermal management systems. 

Already recognized as major players in the global automotive parts industry, Hankook & Company Group and Hanon Systems are expected to create significant waves throughout the mobility sector with this merger. A company spokesperson stated, “Hankook & Company Group is now beginning a new phase as a truly global high-tech corporation, enhancing our value and global presence.”

Hankook & Company Group and Hanon Systems aim to maximize synergies by integrating resources and technology to drive future growth. Both companies plan to share their global sales networks and consolidate supply chain management (SCM) capabilities, including raw material sourcing. They will also merge their IT infrastructure, business processes, and organizational cultures. 

On Nov. 1, the day after the final agreement was signed, Chairman Cho sent a letter to all employees of Hankook & Company Group and Hanon Systems, announcing the integration and outlining strategies to enhance corporate value through synergy creation and ensure a smooth transition. 

In the letter, Cho stated, “The company will leverage all resources, including the holding company, to maximize synergies with Hanon Systems.” He added, “Let’s continue to grow as proactive leaders through communication and collaboration, as we have always done.”

Cho further emphasized, “This acquisition will serve as a pivotal moment for Hanon Systems’ advanced technological capabilities and unique strengths, generating even greater momentum.” He continued, “With the assets of both companies, including personnel and expertise, we will secure the group’s strongest position in the electric vehicle era.”

Hankook & Company Group aims to complete the Hanon Systems acquisition by the end of this year. The company announced that prior to signing the final agreement, it received antitrust approval from authorities in the United States, the European Union, Canada, China, Türkiye, and Mexico. Once overseas government approvals, including the Foreign Subsidies Regulation (FSR), are completed and payments are made for the shares held by Hahn & Company, the acquisition of Hanon Systems will be finalized.

A representative of Hankook & Company Group said, “Chairman Cho’s innovation management and the employees’ proactive capabilities have led to good results. The company will continue communicating with stakeholders to finalize the remaining procedures and position itself as an innovation leader in the future of mobility technology.”