2017 kia sportage configurations - Posco, the fourth biggest steelmaker around the globe, and also the Hyundai Heavy Industries Co., the largest shipyard, will certainly get stakes in each various other to improve cooperation as well as enhance defenses versus aggressive quotes, Posco claimed the other day.
The Pohang-based steelmaker is anticipated to spend 346.6 billion won which is equivalent to US$ 373 million so as to obtain a 1.9 percent risk in Hyundai Heavy held by the Hyundai Mipo Dockyard Co, Posco stated in a regulative filing. In return, Hyundai Mipo will certainly acquire about 872,000 Posco shares.
Lee Ku Taek, the Posco ceo, will be joining international opponents in boosting defenses to guarantee the company's independence as market consolidation accelerates. The firm stated last month that 41 percent of its shares were had by so-called friendly capitalists which currently consist of the Nippon Steel Corp.
The stake acquisitions are little, but they will certainly contribute to Posco's friendly shareholdings,"said Kim Gyung Jung, an analyst at Samsung Securities Co in Seoul. The offers are? good for Posco's supply as there will be extra demand for it.
In 2006, the Mittal Steel Co. acquired Arcelor SA for US$ 38.3 billion so as to create the Arcelor Mittal - the biggest steel manufacturer worldwide. The move is done to handle the expanding worldwide industry in addition to to improve bargaining power with suppliers as well as consumers. Furthermore, India's Tata Steel Ltd acquired Corus Group Plc for $12 billion in January.
Posco shares, the 2nd most valuable stock on the benchmark Kospi index, gained 2,500 won or 0.6 percent to 400,000 won Thursday. That matched the record closing on April 24. The announcements followed the market's close at 3 in the afternoon.
Posco, which is 59 percent possessed by overseas investors, counts Nippon Steel, the 2nd largest metalmaker worldwide, as its largest shareholder and ally. On October 20, Nippon Steel and Posco said they would certainly invest more than $900 million to enhance stakes in each other. The Japanese steel manufacturer claimed last month that it had a 5 percent risk in Posco.
"We remain in talks," Posco spokeswoman Ko Minutes Jin said today, responding to report in the Korea Economic Daily that Posco as well as the world's biggest shipyard might take one percent risks in each various other. One percent risk in Posco is worth regarding 348 billion won or 375 million bucks. A comparable risk in Hyundai Heavy deserves approximately 185 billion won. Hyundai chilly air consumption should have been blowing favorable feelings in favor of the automaker.
Asian steelmakers like Posco and Nippon Steel are quickening to boost their market price and take defensive techniques against possible requisitions after Mittal Steel Co.'s $38.3 billion requisition this year of its largest rival, Arcelor SA. Posco's share price has increased lately on supposition that the steelmaker, which is owned 60 percent by international financiers, might end up being a prime target for a hostile takeover effort by Mittal Steel.
Last year, the two steelmakers stated they would certainly spend more than $900 million to increase risks in each other. South Korea's National Pension Fund, the country's biggest institutional investor, has 2.9 percent of Posco. In December, billionaire investor Warren Buffett's Berkshire Hathaway Inc. additionally disclosed it has a 4 percent share in Posco.