2016 mitsubishi outlander review - Posco, the fourth largest steelmaker around the world, as well as the Hyundai Heavy Industries Co., the most significant shipyard, will certainly purchase risks in each various other to improve teamwork and reinforce defenses versus hostile proposals, Posco claimed yesterday.
The Pohang-based steelmaker is anticipated to spend 346.6 billion won which is equivalent to US$ 373 million so as to get a 1.9 percent stake in Hyundai Heavy held by the Hyundai Mipo Dockyard Co, Posco stated in a governing declaring. In return, Hyundai Mipo will purchase concerning 872,000 Posco shares.
Lee Ku Taek, the Posco president, will certainly be joining global competitors in enhancing defenses to make certain the business's independence as industry consolidation speeds up. The firm said last month that 41 percent of its shares were possessed by so-called pleasant capitalists which already include the Nippon Steel Corp.
The risk acquisitions are small, however they will certainly add to Posco's friendly shareholdings,"said Kim Gyung Jung, an analyst at Samsung Securities Co in Seoul. The bargains are? good for Posco's stock as there will be more demand for it.
In 2006, the Mittal Steel Co. purchased Arcelor SA for US$ 38.3 billion so regarding create the Arcelor Mittal - the largest steel maker worldwide. The step is done to cope with the expanding international industry in addition to to improve negotiating power with vendors and also clients. In addition, India's Tata Steel Ltd bought Corus Group Plc for $12 billion in January.
Posco shares, the 2nd most beneficial stock on the benchmark Kospi index, got 2,500 won or 0.6 percent to 400,000 won Thursday. That matched the document closing on April 24. The news followed the marketplace's close at 3 in the mid-day.
Posco, which is 59 percent possessed by overseas investors, counts Nippon Steel, the second biggest metalmaker worldwide, as its biggest shareholder and also ally. On October 20, Nippon Steel and also Posco said they would spend more than $900 million to enhance risks in each various other. The Japanese steel manufacturer said last month that it possessed a 5 percent stake in Posco.
"We remain in talks," Posco spokeswoman Ko Min Jin said today, reacting to report in the Korea Economic Daily that Posco and also the globe's biggest shipyard may take one percent risks in each other. One percent risk in Posco is worth concerning 348 billion won or 375 million bucks. An equal risk in Hyundai Heavy is worth about 185 billion won. Hyundai cold air consumption must have been blowing positive feelings for the car manufacturer.
Oriental steelmakers like Posco as well as Nippon Steel are quickening to boost their market values and also take protective methods versus feasible requisitions after Mittal Steel Co.'s $38.3 billion takeover this year of its greatest competitor, Arcelor SA. Posco's share cost has increased lately on speculation that the steelmaker, which is owned 60 percent by international capitalists, may end up being a prime target for an aggressive takeover attempt by Mittal Steel.
In 2015, both steelmakers said they would spend more than $900 million to raise stakes in each various other. South Korea's National Pension plan Fund, the country's largest institutional investor, owns 2.9 percent of Posco. In December, billionaire capitalist Warren Buffett's Berkshire Hathaway Inc. likewise divulged it has a 4 percent share in Posco.