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Hanwha Aerospace pulls out of Poongsan ammunition acquisition bid

Published: 09 Apr. 2026, 18:54 Updated: 09 Apr. 2026, 19:12

KIM MIN-YOUNG
[email protected]

Hanwha Aerospace's logo is seen in this illustration made on July 26, 2025. [REUTERS/YONHAP]

Hanwha Aerospace has decided not to proceed with its bid to acquire the ammunition production division of defense manufacturer Poongsan.

Hanwha Aerospace said, “Our review of the acquisition of Poongsan’s defense business has been discontinued,” in a regulatory filing Thursday.

Poongsan also disclosed Thursday that it has decided not to proceed with the sale of its ammunition business.

“We are reviewing various measures, including business restructuring to enhance corporate and shareholder value, but there is currently no plan underway to sell the ammunition business,” the company said in a regulatory filing Thursday.

Hanwha Aerospace had been reported to have effectively participated alone in a private tender for the sale of Poongsan’s ammunition division and to have submitted a final bid.

Hanwha Aerospace had previously said on Monday that the company is “continuously reviewing various business opportunities, including Poongsan's ammunition division, to strengthen defense competitiveness and enhance corporate value.”

Monday’s filing came after the Korea Economic Daily reported Saturday that Hanwha Aerospace had submitted a binding final bid for Poongsan’s ammunition division in a private tender and appeared to be the only serious bidder after other potential candidates, including Hyundai Rotem, did not participate.

If the acquisition had materialized, Hanwha Aerospace was expected to achieve vertical integration from ammunition production to weapons platform manufacturing and exports.

BY KIM MIN-YOUNG [[email protected]]