2016 ram 3500 - Posco, the 4th largest steelmaker around the globe, as well as the Hyundai Heavy Industries Co., the biggest shipyard, will certainly purchase stakes in each other to improve teamwork as well as enhance defenses against hostile proposals, Posco claimed the other day.
The Pohang-based steelmaker is expected to invest 346.6 billion won which is equivalent to US$ 373 million so regarding get a 1.9 percent risk in Hyundai Heavy held by the Hyundai Mipo Dockyard Carbon monoxide, Posco claimed in a regulatory filing. In return, Hyundai Mipo will certainly acquire about 872,000 Posco shares.
Lee Ku Taek, the Posco chief executive officer, will certainly be signing up with global opponents in increasing defenses to guarantee the firm's self-reliance as market consolidation accelerates. The business claimed last month that 41 percent of its shares were had by so-called pleasant capitalists which already include the Nippon Steel Corp.
The stake acquisitions are tiny, however they will contribute to Posco's pleasant shareholdings,"stated Kim Gyung Jung, an expert at Samsung Securities Co in Seoul. The deals are? great for Posco's stock as there will be much more demand for it.
In 2006, the Mittal Steel Co. purchased Arcelor SA for US$ 38.3 billion so regarding develop the Arcelor Mittal - the biggest steel manufacturer worldwide. The action is done to deal with the expanding worldwide sector along with to improve negotiating power with distributors and also consumers. Furthermore, India's Tata Steel Ltd acquired Corus Group Plc for $12 billion in January.
Posco shares, the 2nd most important stock on the benchmark Kospi index, obtained 2,500 won or 0.6 percent to 400,000 won Thursday. That matched the record closing on April 24. The news followed the market's close at 3 in the afternoon.
Posco, which is 59 percent had by overseas investors, counts Nippon Steel, the second biggest metalmaker worldwide, as its biggest shareholder as well as ally. On October 20, Nippon Steel and also Posco said they would certainly spend greater than $900 million to increase risks in each various other. The Japanese steel manufacturer said last month that it owned a five percent risk in Posco.
"We remain in talks," Posco spokesperson Ko Min Jin claimed today, replying to report in the Korea Economic Daily that Posco and the world's largest shipyard may take one percent stakes 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 roughly 185 billion won. Hyundai chilly air intake need to have been blowing positive feelings for the automaker.
Oriental steelmakers like Posco as well as Nippon Steel are accelerating to boost their market values and also take defensive methods against feasible takeovers after Mittal Steel Co.'s $38.3 billion takeover this year of its biggest competitor, Arcelor SA. Posco's share price has raised lately on conjecture that the steelmaker, which is possessed 60 percent by foreign financiers, may come to be a prime target for a hostile takeover attempt by Mittal Steel.
Last year, the two steelmakers stated they would spend greater than $900 million to raise stakes in each various other. South Korea's National Pension plan Fund, the country's biggest institutional financier, possesses 2.9 percent of Posco. In December, billionaire financier Warren Buffett's Berkshire Hathaway Inc. also divulged it possesses a 4 percent share in Posco.