Reuters reported that an affiliate of the world's top shipbuilder, Hyundai Heavy Industries Co Ltd signed a USD 745 million contract on to buy a small domestic brokerage and an asset management firm.

As per report, the signing took place after Hyundai Heavy and affiliate Hyundai Mipo Dockyard Co Ltd agreed in May to buy a majority of unlisted CJ Investment & Securities Co Ltd from CJ Group companies, including CJ Corp and CJ Chairman Lee Jay hyun.

The purchase of a 75% stake in the securities firm was valued at KRW 705 billion (USD 701.8 million) and was funded by Hyundai Mipo alone.

Hyundai Mipo also shelled out an additional KRW 43 billion for a minor stake in CJ Asset Management Co Ltd, a unit of the CJ brokerage house, to bring its ownership in the fund manager to 99%.

Hyundai Mipo in a filling to Korea Exchange said that "We will generate additional revenues through efficient management of cash assets and strengthen business capacity.”

With the acquisition, Hyundai Mipo and Hyundai Heavy join the ranks of South Korean manufacturers and banks moving to buy or launch securities houses and asset management firms.