OCI, Hanmi Pharmaceutical to merge to create greater synergy

OCI Holdings Chairman Lee Woo-hyun, left, and Hanmi Pharmaceutical Group Chairwoman Song Young-sook / Courtesy of OCI Holdings, Hanmi Pharmaceutical Group

OCI Group, a chemical, solar power and electric car battery material maker, and drug developer Hanmi Pharmaceutical Group, will merge under a new corporate body to enhance competitiveness in the bio health care sector, according to the companies, Sunday.

On Friday, OCI Holdings, the holding company of OCI Group, and Hanmi Science, the holding company of Hanmi Pharmaceutical Group, announced that they have concluded an agreement for group integration through stock acquisition and new share issuances, following approvals from the board of each company.

Under the contract, OCI Holdings will acquire a 27 percent stake in Hanmi Science, and key shareholders of Hanmi Science, including President Lim Ju-hyun, will acquire a 10.4 percent stake in OCI Holdings.

Lee Woo-hyun, chairman of OCI Holdings, and the president of Hanmi Science will each serve as respective representatives of the integrated holding company.

OCI Holdings and Hanmi Pharmaceutical Group will also be working on a new company name and brand integration as part of the overall integration process. Once integration is completed, the newly born company will encompass a range of business sectors such as pharmaceuticals, bio and advanced materials, and renewable energy.

OCI explained that through this integration, Hanmi Biopharmaceutical Group will secure more powerful new drug research and development capabilities and OCI Group will be able to further strengthen its competitiveness in the health care field, which it has already secured.

"Based on the wide global network of OCI Group in the United States, Southeast Asia and Japan, it will be able to create synergy with the pharmaceutical and bio business fields that Hanmi Pharmaceutical Group has actively deployed in the global market," OCI Holdings said.

Since 2018, OCI Holdings' investments have centered on pharmaceuticals and new drug development companies by establishing a bio business division. In 2022, it acquired a 10.9 percent stake in the domestic biopharmaceutical company Bukwang, becoming the largest shareholder and strengthening its bio business.