Bobcat, Doosan Robotics Shareholders Nix Merger
Opposition from shareholders led to the withdrawal of a proposed merger between construction equipment manufacturer Doosan Bobcat and the collaborative artificial intelligence and robot maker Doosan Robotics.
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| A proposed merger between Doosan Bobcat and Doosan Robotics was halted by emergency votes by the companies' respective boards. |
Announced on July 11, 2024, the proposal was for Bobcat, a subsidiary of Doosan Enerbility, to become a wholly owned subsidiary of Doosan Robotics. The intended strategy was to help the company maintain a leading position in the development of unmanned and automated compact equipment.
“Through the proposed integration with Doosan Robotics, we intended to advance our work in autonomous machines and artificial intelligence, while creating smarter, more capable machines for construction, landscaping, agriculture, and logistics industries,” said Bobcat CEO Scott Park stated in a letter to shareholders on Aug. 29.
Over the past five years, many equipment manufacturers have invested in technology based on the increased desire to “replace human labor” due to labor shortages, rising labor costs, and stricter safety regulations. Collaborations and mergers between equipment manufacturers and robotics-based companies have been actively pursued in recent years. Caterpillar acquired Marble Robot in 20220 and John Deere purchased Bear Flag Robotics in 2021.
Even Bobcat has been working with several technology companies such as Moog Inc. and others to develop its systems.
“We continue to believe that the proposal would support sustainable long-term growth and represent a valuable opportunity to align both shareholder interest and the company’s objectives,” Park stated in his letter.
Opposition voiced by shareholders was sufficient to indicate that the proposal was no longer possible.
“We believe that no restructuring of the business or corporate governance can be accomplished without the full trust and support of our shareholders,” Park wrote.
Doosan Bobcat and Doosan Robotics held emergency board meetings last week to cancel the share exchange. Park indicated that Bobcat would continue to seek ways to collaborate with Doosan Robotics.
“We regret the confusion this has caused,” he wrote. “We are committed to seeking out and considering the thoughts and opinions of the market to become a company that earns greater trust from our valued shareholders.”
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