November 22, 2008

STX Group to join POSCO for Daewoo Shipbuilding bid

STX Group said that it is ready to chip in KRW 300 billion to join a consortium led by local steel giant POSCO to take over Daewoo Shipbuilding & Marine Engineering.

Mr Lee Jong chul VC of STX Group said that "We want to participate in the Daewoo Shipbuilding bidding. But we will invest a maximum of KRW 300 billion to grab some managerial rights for the world's third-biggest shipyard. When we look out our own side, a possible approach by POSCO would be more than welcome."

Meanwhile, a POSCO spokesman declined to elaborate on STX's comments. POSCO has been seeking shipping and energy related partners to join forces and boost its chances of winning the bid for DSME. Very recently, Korea's SK Group, which controls the nation's largest oil refining company, was mulling over plans to join POSCO in its bid.

Besides POSCO, three other groups namely Hyundai Heavy Industries, GS Group and Hanwha Group have thrown their hats into the ring to buy the Daewoo shareholding. All four groups are expected to start due diligence on DSME in the middle of this month.