Visteon's plan to fully control South Korea's Halla air conditioning is frustrated

According to Reuters news recently, Visteon’s plan to fully acquire Halla Air conditioning in South Korea will face opposition from Hyundai Motor, the latter’s largest customer, and may plan to suffer setbacks.

Visteon now holds a 70% stake in Halla Air Conditioning. This part of the assets is considered by the industry as the best asset in its Asia region. Visteon hopes to buy 30% of the remaining $700 million worth of shares, which should be dismantled before Visteon’s mergers and acquisitions. The danger is to keep the company's independence. The main business of Halla is to manufacture air conditioners and heaters for vehicles, to acquire Halla, to focus on the production of air-conditioning equipment, to help Visteon, once bankrupt, to tide over the difficulties, and to simplify the company's structure.

Halla Air Conditioning is worth 2.4 billion, which is comparable to Visteon, but Halla Air Conditioning has a strong momentum of development, so Visteon needs to pay a high extra cost.

Informed sources revealed that any bidder who wants to acquire Halla Air Conditioning will be hampered because Hynner Air Conditioning’s largest customer, Hyundai Motors, strongly opposes the full control of Halla Air Conditioning by an American company. In addition, the Halla Group also intends to acquire Halla Air Conditioning, which was once a business of the Halla Group but was sold during the Asian economic crisis. Hyundai Motor and the Halla Group's president have a very close relationship. In the face of tremendous internal and external pressure, it is still not known whether Visteon will succeed in bidding.