이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

Nippon Steel & and Posco expected to end cross-shareholding pact

Collected: 2016.05.17

Distributed: 2016.05.18

Source: Go Direct

Nippon Steel & Sumitomo Metal Corp. (NSSM) announced intention to sell 1.5 million shares in its Korean rival Posco, while the Korean steelmaker also said it plans to sell its stake in the Japanese company, indicating possible end to near decade-old strategic alliance between the two. Industry watchers believe the unloading of shares in one another suggests the two steelmaking giants are gearing up for rivalry amid improving global market conditions.

NSSM, the second largest steelmaker in the world, formed a strategic alliance with its Korean rival Posco in 2000 through cross holding of shares to protect their management control amid signs of intimidating expansion in Asia by Luxembourg-based ArcelorMittal S.A. The Japanese steel giant raised its stake in Posco to 5.04 percent in March 2007 and retained shares for nine years so far. NSSM’s stake in Posco will fall to 3.32 percent if it sells the shares worth 311.25 billion won ($265.5 million) based on Posco’s Monday closing.

The Japanese company said it plans to sell Posco shares to improve its financial state and will decide on the time upon watching market conditions.

Posco holds 2.51 percent in NSSM worth about 568 billion won at current value, and the Korean steelmaker said it was considering to sell the shares, but hasn’t decided on the scope and timing. A company official said Posco was undisturbed by the decision as shares were held entirely to defend management rights.

By Park Yong-beom

Read in Korean

List

Previous: Samsung Electronics ranks 1st in Q1 smartphone sales in most emerging markets

Next: NPS to up its investment in foreign assets to 35% by 2021