Hyundai and PSA buy remaining Busan terminal from PE firm

HYUNDAI Merchant Marine (HMM) and Singapore's PSA International have secured complete ownership of a Port of Busan terminal, reports London's Port Technology International.

Both Korean shipping giant HMM and global port operator PSA will each hold a 50 per cent in the terminal after purchasing the remaining shares from a Korean venture capital firm IMM Investment in a deal on May 15.

Due to the new ownership, the terminal has changed its name from Hyundai Pusan New-Port Terminal to Korea Shipping Partnership Pusan Newport Terminal.

HMM fronted a majority of the final investment with PSA to take joint ownership, securing 40 per cent of the remaining shares in order to lower its cargo handling costs.

PSA took 10 per cent of IMM Investment's stake. HMM's stake decreased to 10 per cent in 2016 after it sold shares due to mounting debts.