- Win control of POSCO P&S’s key units from March 1  

- Company to provide customers with customized “Solution Marketing”

- POSCO DAEWOO secures a more stable business structure, which will also  give a boost to the company’s other business units 



 

POSCO DAEWOO has completed the process to take over POSCO P&S’s steel-marketing and other core business units.

 

The nation’s biggest trading company said POSCO P&S’s key units are under its control from Wednesday, paving the way for POSCO DAEWOO to become one of the world’s top trading companies. The transferred units are steel trading, steel-machining services and the scrap steel business. This has streamlined POSCO Group’s steel distribution channels in domestic and overseas markets. It has also made it possible for the company to provide its customers with customized “Solution Marketing.”

 

“The merger has bolstered POSCO DAEWOO’s international competitiveness in the steel trading business,” POSCO DAEWOO CEO Kim Sang-young said. “It presented us with a more stable business structure, which will also give a boost to the company’s other business units.”  

 

POSCO DAEWOO’s takeover of POSCO P&S’s key units was decided at a board meeting in November. Since then, taskforces from the two companies worked to ensure a smooth integration. POSCO DAEWOO signed the deal with POSCO P&S at the stock exchange ratio of 1 to 0.494, meaning one POSCO DAEWOO share will be exchanged for 0.494 of a POSCO P&C share. POSCO DAEWOO will issue new shares based on the ratio to POSCO P&S shareholders on March 14.

 

Meanwhile, POSCO DAEWOO is striving to become the world’s major trading company, with steel trading and natural resource development as its two core businesses and grain, car parts and IPP (independent power producer) as three strategic businesses.