South Korean poultry processor Harim Group has been named the preferred bidder for ocean carrier HMM, with an offer price of 6.4 trillion won ($4.92 billion). The deal would be South Korea’s biggest acquisition this year. Harim owns smaller rival Pan Ocean.

Harim, a Korean conglomerate, is considering buying HMM, the world’s eighth-largest container shipper, despite its financial troubles. HMM’s market capitalization is 10.59 trillion won. The conglomerate generated revenue of 18.58 trillion won in 2022, while Harim seeks to raise capital in a consortium with JKL Partners. HMM’s operating profit margin reached 54% in 2022, but the development bank is selling its stake in the shipper. Harim entered the maritime shipping industry in 2015 by acquiring Pan Ocean.