POSCO Seeks to Acquire Daewoo

28 February 2010 (Last Updated February 28th, 2010 18:30)

POSCO seeks to buy a large stake in Daewoo International and Daewoo Shipbuilding & Marine Engineering (DSME). In January, POSCO said it would nearly double its investment spending this year to KRW9.3 trillion ($8.3bn), including a third of that on acquisitions. It now aims to take a

POSCO seeks to buy a large stake in Daewoo International and Daewoo Shipbuilding & Marine Engineering (DSME).

In January, POSCO said it would nearly double its investment spending this year to KRW9.3 trillion ($8.3bn), including a third of that on acquisitions. It now aims to take a stake of up to 68% in Daewoo.

The assets of Dawoo International are estimated to be worth about KRW4 trillion ($3.4bn) while assets of DSME amount to nearly KRW16 trillion ($13.8m).

If POSCO succeeds in taking over the two companies, its assets will increase to nearly KRW70 trillion ($60.3bn) from the current liquid asset of about KRW7 trillion ($6bn), according to industry experts.