Hyundai Motor Group, the world's fifth-largest auto giant, said Monday that it has no interest in an embattled shipping company, making it clear that its main focus remains on its core car-making business.

Market sources earlier confirmed that Hyundai Glovis, a logistics unit of the auto giant, has been contacted about a possible takeover of Hyundai Merchant Marine, which is going through a corporate overhaul to tide over mounting losses. 

Hyundai Glovis is in charge of shipping cars mostly produced by the auto group's two major units -- Hyundai Motor and Kia Motors.

Hyundai Merchant is a shipping line under Hyundai Group, a conglomerate headed by the wife of the late brother of Hyundai Motor Group's chairman Chung Mong-koo.

"I know that Hyundai Glovis has received the takeover proposal," a high-ranking official of the auto group said on condition of anonymity. "It is our position to focus on our core auto-making business. We have no interest in Hyundai Merchant which has nothing to do with vehicles."

Rumors swirled that Hyundai Motor Group might come to the rescue for Hyundai Merchant through a stake purchase. Some experts speculated that its consolidation with Hyundai Merchant could be possible as it would produce a giant logistics firm that has a strong logistical network.

Hyundai Group has been working to salvage Hyundai Merchant, one of its key units, which has been in the red for years due to a decline in freight rates and global trade.

Recently, the group announced a set of self-rescue measures to improve the financial health of the company, including an asset sale. On Friday, shareholders of the shipping firm approved a capital reduction aimed at preventing it from being delisted from the local stock market. (Yonhap)