South Korea-based Hanwha Group is reportedly looking to purchase ship engine manufacturer STX Heavy Industries.

STX Heavy Industries is involved in the production of ship engines and shipbuilding tools. The firm primarily develops diesel marine engine and dual fuel engine.

The company’s clients include Daewoo Shipbuilding & Marine Engineering (DSME) and K Shipbuilding, among others.

In 2018, South Korean private equity fund Pine Tree Partners bought a 67% stake in STX Heavy Industries in a deal valued at KRW98.7bn ($77m).

As part of the latest development, Hanwha Group plans to buy a 47.81% stake in STX Heavy Industries owned by Pine Tree Partners.

The move is aimed at carrying out new merger and acquisition (M&A) deals to expand the firm’s shipbuilding activities.

Earlier this month, Hanwha Group took part in a preliminary bid to acquire the ship engine builder, The Korea Economic Daily has reported citing sources privy to the development.

Approximately four to five Korean firms as well as private equity funds such as Korea Shipbuilding & Offshore Engineering also participated in the bid.

Last week, Hanwha Group announced the signing of a deal to buy shipbuilding and offshore firm DSME.

The deal comes after a tentative agreement reached for the same purpose in September this year.

It allows firms affiliated with Hanwha, such as Hanwha Aerospace, to purchase a 49.3% interest and management rights in DSME for $1.53bn.