It is reported that Dongkuk Steel Mill’s pursuit of Ssangyong Engineering Construction has flopped after Korea Asset Management Corporation annulled the initial contract.

It may be noted that Dongkuk Steel Mill was appointed as the preferred negotiator of Ssangyong in July 2008 after the MoU was signed.

Burdened by deepening stagnation in the construction industry and the falling value of Ssangyong shares, Dongkuk Steel requested that Kamco reflect the recent economic changes and the company’s worsening capital reserves in the acquisition price and extend the acquisition process for a year.

According to Dongkuk Steel, Kamco informed Dongkuk that it is invalidating the earlier agreement as it could not accept the 1 year extension.

As Dongkuk is no longer the preferred negotiator, the acquisition of Ssangyong has gone back to the drawing board.

(Sourced from joongangdaily.joins.com)