Korean group to acquire UK-based Mitsui Babcock

London – South Korean group Doosan Heavy Industries & Construction (DHIC) is to acquire energy services company Mitsui Babcock, part of Mitsui Engineering & Shipbuilding, for around £100m. The deal, which will see the company’s name changed to Doosan Babcock, is due for completion by January 2007.

Engineering and construction group DHIC said Doosan Babcock will remain an independent, UK-based company  and focus on global opportunities in major power plant engineering, procurement and construction projects and aftermarket services to the energy industry.

Mitsui Babcock’s expertise in utility boilers and aftermarket services “complements our portfolio of products and services and will help us realise our goal of becoming the global number one company in the power industry,” said Nam-doo Lee, president and CEO of DHIC.

“By uniting with an organisation solely dedicated to the energy sector we are confident the Company will achieve its full potential in a global power market offering significant growth opportunities,” added Yasu Katoh, chief executive of Mitsui Babcock.

DHIC has to date built over 300 nuclear, thermal, combined cycle and hydro power plants and is currently building more than 60 power plants in countries including Korea, the US, India, China. The Korean group is also emerging as a major EPC contractor and is developing wind power systems, fuel cells and new energy technologies.