Doosan Group said Thursday it decided to drop a plan to combine Doosan Bobcat Inc., a major construction equipment supplier, and Doosan Robotics Inc., the country’s largest collaborative robot maker, due to lack of support from their shareholders.

Doosan Bobcat and Doosan Robotics both held emergency board meetings earlier in the day and decided to withdraw the proposed merger, they said.

The two announced last month their plan for a merger aimed at creating business synergies for sustainable growth.

Under the plan, Doosan Bobcat planned to spin off from its mother company, Doosan Enerbility Co., to become a wholly owned subsidiary of Doosan Robotics.

And the group had planned to delist Doosan Bobcat on the stock market.

“However, following the announcement of the proposal, some of our valued stakeholders shared critical views and diverse opinions,” the companies said in letters to their stakeholders, referring to criticism that the plan could work against shareholder value.

Doosan Bobcat and Doosan Ro
botics said they will continue to seek ways to create synergies.

Source: Yonhap News Agency