Abengoa SA, 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.