Posted on 05 Jun 2014
POSCO likely to buy Dongbu's mill
POSCO is expected to take over a steel mill and a power plant belonging to troubled Dongbu Steel.
POSCO officials said that the country's biggest steel maker completed due diligence on the two facilities last week and will soon make a decision based on the results of the one month long inspection.
They remained tight lipped as to whether POSCO, which is also undergoing radical restructuring in the face of declining profits and snowballing debt, will take over the two facilities in a package. Rumors have it that Dongbu wants POSCO to buy them for KRW 1 trillion.
- Nothing is certain at the moment. The due diligence was finished last week. The company will soon make a decision based on the results. Despite that, speculation is mounting that POSCO will end up taking over the assets, Mr Kim Min hee an official at POSCO's public relations department said.
- POSCO seems to be positive about taking them over. The remaining question is will POSCO be able to utilize them wisely. POSCO feels pressured to support Dongbu's self-restructuring endeavor as a leader of the country's steel industry, an industry source said.
Source: SteelGuru
