Abengoa’s Waste Recycling Unit Acquires 55% of South Korean Firm

Abengoa SA (ABG), whose operations range from generating power from the sun to producing biofuels and desalinating seawater, has agreed to acquire 55 percent of the South Korean company Hankook R&M.

The deal through its Befesa waste division with Hankook, which specializes in recycling steel dust, is valued at 60 million euros ($78 million), the Seville-based company said. Abengoa has an option to buy 25 percent more of Hankook after a year and the remainder from the third to fifth years, it said.

The engineering and renewable-energy company, the biggest recipient of subsidies for solar-thermal power in Spain, among other ventures started a desalination plant in Chennai, India, two years ago.

Expanding into South Korea is “an excellent business opportunity” as the country is the world’s fourth-largest producer of steel dusts, Abengoa said in yesterday’s statement. Abengoa shares have declined 15 percent this year.

To contact the reporter on this story: Randall Hackley in Zurich at rhackley@bloomberg.net

To contact the editor responsible for this story: Randall Hackley at rhackley@bloomberg.net