2018 bmw x2 - Posco, the 4th biggest steelmaker around the globe, and also the Hyundai Heavy Industries Co., the largest shipyard, will buy risks in each various other to increase teamwork and enhance defenses versus hostile quotes, Posco said yesterday.
The Pohang-based steelmaker is expected to invest 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 Co, Posco claimed in a regulative filing. In return, Hyundai Mipo will buy about 872,000 Posco shares.
Lee Ku Taek, the Posco ceo, will certainly be joining worldwide competitors in increasing defenses to ensure the company's freedom as market combination speeds up. The business stated last month that 41 percent of its shares were had by so-called pleasant financiers which already consist of the Nippon Steel Corp.
The risk acquisitions are small, but they will certainly add to Posco's pleasant shareholdings,"said Kim Gyung Jung, an expert at Samsung Securities Co in Seoul. The deals are? great for Posco's stock 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 largest steel manufacturer worldwide. The action is done to manage the growing international sector along with to enhance bargaining power with suppliers as well as customers. Furthermore, India's Tata Steel Ltd purchased Corus Team Plc for $12 billion in January.
Posco shares, the second most important supply on the benchmark Kospi index, got 2,500 won or 0.6 percent to 400,000 won Thursday. That matched the record closing on April 24. The statements came after the market's close at three in the afternoon.
Posco, which is 59 percent had by abroad capitalists, counts Nippon Steel, the 2nd largest metalmaker worldwide, as its greatest investor and ally. On October 20, Nippon Steel and Posco stated they would spend more than $900 million to raise risks in each various other. The Japanese steel maker claimed last month that it had a 5 percent risk in Posco.
"We remain in talks," Posco spokeswoman Ko Min Jin claimed today, reacting to report in the Korea Economic Daily that Posco as well as the globe's biggest shipyard might take one percent stakes in each various other. One percent stake in Posco deserves concerning 348 billion won or 375 million dollars. A comparable stake in Hyundai Heavy is worth approximately 185 billion won. Hyundai chilly air intake must have been blowing favorable feelings for the automaker.
Eastern steelmakers like Posco as well as Nippon Steel are speeding up to enhance their market values and take defensive approaches against possible takeovers after Mittal Steel Co.'s $38.3 billion takeover this year of its biggest competitor, Arcelor SA. Posco's share cost has actually raised recently on supposition that the steelmaker, which is possessed 60 percent by international investors, may end up being a prime target for an aggressive requisition attempt by Mittal Steel.
Last year, both steelmakers said they would invest greater than $900 million to increase stakes in each various other. South Korea's National Pension Fund, the nation's biggest institutional capitalist, owns 2.9 percent of Posco. In December, billionaire capitalist Warren Buffett's Berkshire Hathaway Inc. also revealed it owns a 4 percent share in Posco.