2018 buick regal gs - Posco, the fourth biggest steelmaker around the world, and the Hyundai Heavy Industries Co., the largest shipyard, will certainly acquire stakes in each various other to enhance cooperation and also reinforce defenses versus aggressive bids, Posco claimed yesterday.
The Pohang-based steelmaker is expected to invest 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 Carbon monoxide, Posco said in a governing filing. In return, Hyundai Mipo will acquire concerning 872,000 Posco shares.
Lee Ku Taek, the Posco president, will be signing up with global rivals in improving defenses to make sure the company's independence as industry consolidation accelerates. The business stated last month that 41 percent of its shares were possessed by supposed friendly capitalists which already include the Nippon Steel Corp.
The stake acquisitions are little, yet they will certainly add to Posco's friendly shareholdings,"stated Kim Gyung Jung, an analyst at Samsung Stocks Carbon Monoxide in Seoul. The bargains are? good for Posco's supply as there will be a lot more need 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 expanding global market as well as to boost negotiating power with suppliers and consumers. In addition, India's Tata Steel Ltd purchased Corus Team Plc for $12 billion in January.
Posco shares, the 2nd most valuable stock on the benchmark Kospi index, acquired 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 possessed by abroad investors, counts Nippon Steel, the second biggest metalmaker worldwide, as its most significant shareholder and ally. On October 20, Nippon Steel and also Posco claimed they would certainly invest greater than $900 million to enhance stakes in each other. The Japanese steel maker said last month that it owned a 5 percent risk in Posco.
"We are in talks," Posco spokeswoman Ko Min Jin stated today, responding to report in the Korea Economic Daily that Posco as well as the world's largest shipyard may take one percent risks in each other. One percent risk in Posco deserves concerning 348 billion won or 375 million bucks. A comparable risk in Hyundai Heavy deserves roughly 185 billion won. Hyundai chilly air intake need to have been blowing favorable feelings in favor of the automaker.
Oriental steelmakers like Posco and Nippon Steel are accelerating to improve their market price and take protective strategies against possible takeovers after Mittal Steel Co.'s $38.3 billion takeover this year of its most significant competitor, Arcelor SA. Posco's share cost has actually boosted lately on conjecture that the steelmaker, which is possessed 60 percent by international capitalists, may become a prime target for a hostile takeover effort by Mittal Steel.
Last year, the two steelmakers said they would certainly spend greater than $900 million to raise stakes in each various other. South Korea's National Pension Fund, the nation's biggest institutional financier, has 2.9 percent of Posco. In December, billionaire capitalist Warren Buffett's Berkshire Hathaway Inc. likewise disclosed it owns a 4 percent share in Posco.