Bidding Heats Up for Former STX Shipbuilding with US Private Equity
The first round in the process for the potential sale of South Korea’s K Shipbuilding was completed last week, with reports that U.S. private equity investor TPG Group has jumped in as an entrant. The shipyard is reported to be drawing strong interest from investors as it is well-positioned to benefit from Korea’s Make American Shipbuilding Great Again (MASGA) initiative.
K Shipbuilding was relaunched in 2021 after the former STX Offshore & Shipbuilding was acquired by an investment group led by United Asset Management and KHI. The new owners were credited with stabilizing production, lowering costs, and restoring the financially troubled yard on a growth trajectory. In 2024, the yard reported sales of approximately $638 million and produced a profit. As of September, the yard reported it had already booked $560 million or orders for eight ships and options for two additional vessels. It again achieved an operating profit for the first half of 2025.
The investment group launched the sale program, setting November as the deadline for potential bidders to submit letters of intent. Korean media reports said that at least three companies are believed to have already indicated interest in participating in the auction, which will likely take place early next year. Korea’s three largest shipbuilders, Hyundai, Samsung, and Hanwha Ocean, are reported not to be among the bidders.
TPG, which was launched out of the former Texas Pacific Group, reports it currently has $286 billion under management. It is said to be looking at K Shipbuilding as an investment and not seeking management control. TPG joined with Korea’s Taekwang Group, an investment conglomerate with current investments in clothing and apparel, chemicals, real estate, and financial services, in the bid for the shipyard.
Media reports indicate the sellers have set a target price of $340 million or above for the shipyard. They currently hold 99 percent of the sales of the former STX. It is believed they are looking to cash out after the successful rejuvenation of the yard and to realize the future potential from the positioning to be part of MASGA.
K Shipbuilding has previously built warships and is reported to be looking to enter the market for maintenance contracts from the U.S. Navy and for the support fleet. It is highlighted that the yard is also in proximity to the Republic of Korea Navy Fleet Support Unit.
The yard has emerged as the leading mid-sized shipbuilder in Korea. It has booked commercial contracts for ships, including recently two large petrochemical carriers.
Ellerman to Consolidate Short Sea Shipping by Acquiring Viasea Shipping
One of the storied names in cargo shipping, Ellerman City Liners, looks to continue its rebirth by expanding and consolidating Europe’s short sea shipping sector. The company reported last week that it has agreed to acquire Norway’s Viasea Shipping.
Viasea Shipping, which was founded in 2016 by a Norway-based logistics company, ColliCare Holdings, was formed on the vision of moving cargo flows from the roads over to the sea. It became one of the largest operators in Oslo, Norway. Today, it provides service links to Lithuania, Poland, the UK, the Netherlands, and Norway. It also coordinates service to Spain and Portugal via Rotterdam.
“This acquisition isn’t just about growth, it’s about redefining shortsea shipping for the future,” said Iain Liddell, Founder & Managing Director of GB Global, a UK-based logistics company and the parent of Ellerman City Liners. “By combining Ellerman’s UK expertise with Viasea’s agile operational shortsea footprint and sustainable solutions, we’re building an extensive European network that delivers speed, reliability, and greener solutions for customers across Europe.”
According to the companies, the acquisition is a strategic move that unites two niche players in the shipping industry. It combines complementary strengths to deliver seamless end-to-end shipping logistics solutions as one partnership and expands the reach of the two operations. Viasea will also benefit from being part of a larger organization. Customers will also have the benefit of rail links to Poland, Hungary, and Romania.
Ellerman is a historic name in shipping that was reborn in 2021. It traces its origins to 1892 and, after early acquisitions, was branded Ellerman in 1902. It grew to have a large fleet of cargo ships and, in the 1960s, partnered with Cunard before being sold to Hamburg Sud in 2004, which ended the branded service. Today, it lists 13 ships among the providers contracted for container transport.
The companies highlight the growth in short sea shipping in Europe. It is presented as an alternative to over-road transport and is more environmentally friendly than long-distance trucking.
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