On May 12, South Korea's POSCO, the world's fourth largest steelmaker, said that it had agreed to buy a 65 percent stake in local South Korean stainless steel producer Taihan ST Co. in a bid to boost its stake in the stainless steel producer to 84.9 percent, as it seeks to ease a supply glut in the domestic steel market.
"The deal would help stabilize the domestic stainless steel market, as we plan to maintain flexibility in operating its plants," POSCO said in a statement.
Neither company provided detailed terms of the deal, including the price.
On May 5, local South Korean sources reported that POSCO would buy Taihan ST for an estimated KRW 70 to 80 billion (approx. $55-63 million).
The cold rolled stainless steel company Taihan ST Co. was set up in 2007 by POSCO and Taihan Electric Wire Co., with POSCO taking a 19.9 percent stake in the company and Taihan controlling 80.1 percent.
Taihan Electric Wire, which has sought asset sales in recent months to secure cash, will remain the second largest shareholder with a 15.1 percent stake.