2017 fusion sport - Posco, the 4th largest steelmaker around the world, and the Hyundai Heavy Industries Co., the greatest shipyard, will purchase risks in each other to improve cooperation and enhance defenses against aggressive bids, Posco stated yesterday.
The Pohang-based steelmaker is expected to spend 346.6 billion won which amounts US$ 373 million so regarding acquire a 1.9 percent stake in Hyundai Heavy held by the Hyundai Mipo Dockyard Carbon monoxide, Posco stated in a governing declaring. In return, Hyundai Mipo will certainly buy regarding 872,000 Posco shares.
Lee Ku Taek, the Posco president, will certainly be joining worldwide competitors in boosting defenses to make certain the company's self-reliance as sector consolidation accelerates. The firm stated last month that 41 percent of its shares were owned by so-called friendly capitalists which already consist of the Nippon Steel Corp.
The risk purchases are small, yet they will contribute to Posco's friendly shareholdings,"claimed Kim Gyung Jung, an expert at Samsung Stocks Carbon Monoxide in Seoul. The offers are? great for Posco's stock as there will be a lot more demand for it.
In 2006, the Mittal Steel Co. purchased Arcelor SA for US$ 38.3 billion so as to form the Arcelor Mittal - the largest steel maker worldwide. The relocation is done to handle the growing global market as well as to boost negotiating power with vendors as well as clients. Additionally, India's Tata Steel Ltd purchased Corus Group Plc for $12 billion in January.
Posco shares, the second most beneficial supply on the benchmark Kospi index, obtained 2,500 won or 0.6 percent to 400,000 won Thursday. That matched the document closing on April 24. The announcements followed the market's close at three in the afternoon.
Posco, which is 59 percent possessed by abroad capitalists, counts Nippon Steel, the second biggest metalmaker worldwide, as its most significant shareholder and ally. On October 20, Nippon Steel and also Posco stated they would spend more than $900 million to increase risks in each various other. The Japanese steel manufacturer stated last month that it had a five percent risk in Posco.
"We are in talks," Posco spokeswoman Ko Min Jin stated today, reacting to report in the Korea Economic Daily that Posco and also the world's biggest shipyard might take one percent stakes in each various other. One percent risk in Posco deserves regarding 348 billion won or 375 million dollars. An equal risk in Hyundai Heavy deserves around 185 billion won. Hyundai cool air intake have to have been blowing favorable vibes for the car manufacturer.
Eastern steelmakers like Posco and also Nippon Steel are quickening to improve their market values and also take defensive methods versus feasible requisitions after Mittal Steel Co.'s $38.3 billion requisition this year of its biggest rival, Arcelor SA. Posco's share cost has boosted lately on conjecture that the steelmaker, which is owned 60 percent by international capitalists, may end up being a prime target for an aggressive takeover effort by Mittal Steel.
In 2014, both steelmakers stated they would invest more than $900 million to increase risks in each other. South Korea's National Pension Fund, the nation's largest institutional financier, owns 2.9 percent of Posco. In December, billionaire investor Warren Buffett's Berkshire Hathaway Inc. also divulged it possesses a 4 percent share in Posco.