Hyundai Motor Group Acquires Full Stake in Hyundai Wia's Shandong Subsidiary in China

[Asia Economy Reporter Suyeon Woo] Hyundai Motor Group will acquire all shares of Hyundai Wia's Shandong subsidiary held by the local government of Shandong Province, China.

On the 24th, Hyundai Wia announced that it will invest 106.838 billion KRW in Hyundai Wia Auto Engine (Shandong) Co., Ltd., increasing its stake from the existing 30% to 42.9%.

Hyundai Motor and Kia Motors will also invest an additional 78.3 billion KRW and 64.1 billion KRW respectively to purchase all shares held by the local government in China.

Hyundai Wia Shandong is a joint venture established in 2007 with a shareholding structure of Hyundai Wia 30%, Hyundai Motor 22%, Kia Motors 18%, and Rizhao Port Group of Shandong Province, China 30%. After this share acquisition, the shareholding structure of Hyundai Wia Shandong will be reorganized to Hyundai Wia 42.9%, Hyundai Motor 31.4%, and Kia Motors 25.7%.

Hyundai Motor Group has been pursuing the acquisition of Chinese shares since 2018, when the Chinese government allowed foreign independent companies in the engine production sector. Hyundai Wia explained that this decision was made "to strengthen market responsiveness through securing independent management rights."

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