2017 subaru legacy review - Posco, the 4th biggest steelmaker around the world, as well as the Hyundai Heavy Industries Co., the greatest shipyard, will certainly acquire stakes in each various other to improve collaboration as well as enhance defenses against hostile proposals, Posco stated yesterday.
The Pohang-based steelmaker is expected to invest 346.6 billion won which amounts US$ 373 million so as to acquire a 1.9 percent stake in Hyundai Heavy held by the Hyundai Mipo Dockyard Carbon monoxide, Posco claimed in a regulative declaring. In return, Hyundai Mipo will acquire regarding 872,000 Posco shares.
Lee Ku Taek, the Posco president, will be signing up with worldwide opponents in boosting defenses to ensure the business's self-reliance as market combination accelerates. The company stated last month that 41 percent of its shares were owned by supposed friendly financiers which currently include the Nippon Steel Corp.
The stake purchases are small, but they will certainly add to Posco's pleasant shareholdings,"stated Kim Gyung Jung, an analyst at Samsung Stocks Carbon Monoxide in Seoul. The bargains are? helpful for Posco's stock as there will be extra need for it.
In 2006, the Mittal Steel Co. acquired Arcelor SA for US$ 38.3 billion so as to develop the Arcelor Mittal - the biggest steel maker worldwide. The action is done to cope with the expanding worldwide sector in addition to to enhance bargaining power with suppliers and customers. Furthermore, India's Tata Steel Ltd purchased Corus Group Plc for $12 billion in January.
Posco shares, the second 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 statements followed the market's close at 3 in the afternoon.
Posco, which is 59 percent owned by overseas financiers, counts Nippon Steel, the 2nd biggest metalmaker worldwide, as its greatest shareholder and ally. On October 20, Nippon Steel as well as Posco claimed they would certainly spend more than $900 million to boost stakes in each various other. The Japanese steel manufacturer stated last month that it had a 5 percent stake in Posco.
"We are in talks," Posco spokesperson Ko Min Jin said today, responding to report in the Korea Economic Daily that Posco and also the globe's largest shipyard might take one percent risks in each various other. One percent stake in Posco deserves concerning 348 billion won or 375 million bucks. An equal risk in Hyundai Heavy deserves approximately 185 billion won. Hyundai cold air consumption have to have been blowing favorable vibes for the car manufacturer.
Oriental steelmakers like Posco and Nippon Steel are quickening to boost their market values and also take protective approaches versus feasible requisitions after Mittal Steel Co.'s $38.3 billion takeover this year of its biggest rival, Arcelor SA. Posco's share price has actually increased just recently on speculation that the steelmaker, which is had 60 percent by international financiers, might end up being a prime target for a hostile takeover attempt by Mittal Steel.
In 2014, both steelmakers claimed they would certainly invest greater than $900 million to boost risks in each various other. South Korea's National Pension plan Fund, the nation's biggest institutional financier, owns 2.9 percent of Posco. In December, billionaire investor Warren Buffett's Berkshire Hathaway Inc. additionally disclosed it owns a 4 percent share in Posco.