A MAJOR South Korean engineering and construction company has bought the UK-based energy services firm Mitsui Babcock.
Mitsui Babcock has agreed to a 100% buyout by Doosan Heavy Industries (UK) for £90M. The deal is expected to be completed in January 2007.
Mitsui Babcock chief executive Yasu Katoh said: 'There are truly exciting times ahead for [new company] Doosan Babcock as part of a group that has the scale and ambition to become one of the major international players in the power plant eld.
'The global power market offers significant growth opportunities.'
The move demonstrates the determination of South Korean companies to expand in the world energy market.
Earlier this year infrastructure giant Amec, coupled with nuclear expert UKAEA, made a similar move when it partnered with the Korean Power Engineering Company (NCE 21 September).
ICE Energy Board chairman David Kerr suggested that the move could help Doosan to better tackle the Chinese market, which is rapidly expanding its energy sector, especially in coalred power stations.
Mitsui Babcock already has an of ce in Shanghai and a history of projects in China.