Mirae Asset named preferred bidder for stake in Daewoo Securities

Mirae Asset named preferred bidder for stake in Daewoo Securities

November 8, 2019 0 By Luis Garrison


It′s the creation of a brokerage giant.
Korea′s fourth largest securities firm Mirae Asset has been named the preferred bidder
for a stake in the nation′s second-largest, Daewoo Securities,… paving the way to
become the country’s biggest brokerage by assets.
The new entity has its eyes on not only becoming the biggest in the country but a global investment
bank that represents Asia. Kim Hyun-bin reports.
Mirae Asset Group has been chosen as the preferred bidder to take over Daewoo Securities. If
taken it will create the country′s largest brokerage firm with a combined capital of
6-point-8 billion U.S. dollars surpassing the previous leader NH Investment and Securities.
Market watchers expect the marriage to create a positive effect as Daewoo Securities has
expertise in investment banking and retail services benefiting Mirae Asset′s overseas
investments. ″It will enhance competition for local brokerage
firms as well as pioneering new markets overseas.″ Competition is expected to become fierce among
large brokerage firms as deregulation of overseas investments is scheduled to occur next year,
thus making a company′s capital power a crucial factor. ″Brokerage firm′s capital power strengthens
sales capabilities. More capital gives an edge in sales. Many small and mid-size brokerage
could M&A into larger firms.″ Although Mirae Asset was successful in becoming
the preferred bidder, it still has many barriers to overcome.
Mirae reportedly offered two-point-one billion dollars for Daewoo Securities,…
30 percent more than the market value. Experts believe its interests alone will come
up to over 22 million dollars a year. Once taken, if Mirae Asset doesn′t find
visible benefits in the near future, it could be stuck in a buyer′s remorse.
Kim Hyun-bin, Arirang News