Posco, a major steel maker, said Thursday that it was interested in Daewoo Shipbuilding & Marine Engineering, one of the world’s largest shipbuilders. The shipyard’s shares surged.
“We are looking with interest as it is a key customer, but nothing is currently being considered,” Posco said in a statement. Korea Development Bank and Korea Asset Management could raise 2.9 trillion won, or $3 billion, if they sell their stakes in Daewoo, based on the company’s share price Thursday.
A takeover by Posco, the biggest supplier of steel plates to South Korean shipyards, would assure a market for its products amid a glut of imports from China, which produces a third of the world’s steel. Posco posted a profit decline in July for a third straight quarter as iron ore costs surged and competition from China drove down metal prices.