HD Hyundai shareholders approve merger of HCE and Infracore, “HD Construction Equipment” set for January 2026

Shareholders of HD Hyundai Construction Equipment and HD Hyundai Infracore have approved a merger that will create a new entity named HD Construction Equipment. The companies set an appraisal-rights window through 10 October, with launch targeted for January 2026.

The new company will operate two global brands, Hyundai and Develon, under a unified structure. Corporate communications state that the goal is faster decision making, stronger cost competitiveness and a broader technology pipeline. The July announcement set a 2030 revenue target of KRW 14.8 trillion, about 11 billion US dollars.

What changes for customers and dealers

Brand strategy is continuity, not consolidation. Hyundai and Develon will remain distinct in the market, including dealer networks in North America. Industry updates in July reiterated that customers will keep working with the same regional teams.

Key terms and timeline

The surviving company is HD Hyundai Construction Equipment, which will issue new shares to HD Hyundai Infracore shareholders at a fixed ratio of 0.1621707 HCE shares per Infracore share. The merger was first disclosed on 1 July 2025 and scheduled for an extraordinary general meeting on 16 September, followed by regulatory and appraisal-rights steps that run into October. Launch is planned for 1 January 2026.

Why it matters

Proxy adviser ISS recommended supporting the deal ahead of the vote, and local financial media reported that regulators cleared key steps during August. The merged business is positioned as South Korea’s largest construction machinery maker and aims to climb the global rankings through scale, product rationalisation and shared R&D.

“ This initiative is essential for sustainable growth and marks a major milestone in advancing Korea’s construction equipment industry,”

said Cho Young-cheul of HD Hyundai XiteSolution when the merger plan was announced in July.

The road ahead

Management highlighted three priorities: strengthen core competitiveness, diversify revenue with engines and aftermarket, and invest in future growth areas such as electrified and smart equipment. Expect a push in compact machines and regional specialisation of production to capture scale and serve local demand faster.

Fact box

Approvals: 99.91% (HCE) and 99.24% (Infracore), meetings held 16 September 2025.
New name: HD Construction Equipment. Launch planned January 2026.
Brands: Hyundai and Develon remain active and separate.
Target: KRW 14.8 trillion revenue by 2030.
Share exchange: 0.1621707 HCE shares per 1 Infracore share.
ISS stance: Recommended approval ahead of the vote.

HD Hyundai shareholders approve merger of HCE and Infracore, “HD Construction Equipment” set for January 2026 published on The HeavyQuip Magazine.