Hanwha, Poongsan call off $1 bil. ammunition biz M&A deal

Korea’s top defense firms Hanwha Aerospace and Poongsan have called off negotiations for Hanwha's acqusition of the Poongsan's ammunition business, triggering speculation over the reasons behind the cancellation. Hanwha Aerospace said in a regulatory posting on Thursday night that it has halted its review of the acquisition. Poongsan also said in a similar filing that it is not pursuing the sale of its ammunition business. The two companies did not elaborate further about why negotiations collapsed. The stock price of Poongsan Holdings, the largest shareholder of Poongsan, plunged by 14.48 percent on Friday to 46,350 won, as investors reacted to the deal's collapse. The deal, valued at 1.5 trillion won ($1 bil.), drew significant industry attention as it was seen as an opportunity to address both companies’ needs. Poongsan, headed by Federation of Korean Industries Chairman Ryu Jin, is Korea’s primary military ammunition manufacturer, producing a wide range of munitions including 5.56-millimeter small-caliber rounds, 155-millimeter artillery shells, missile warheads and even sports