POSCO Evaluate Daewoo International More than 4 Trillion Won

POSCO expects the firm could acquire synergy effect of more than 4 trillion won or 295 billion yen from the merger of Daewoo International Corporation. The firm has already finished the review and evaluated the value of energy and raw material assets. The firm plans to complete the merger until late September through the negotiation with Daewoo International.

POSCO acquired preferential negotiating rights to buy 68.2% Daewoo International’s interest from South Korean authorities in May.

POSCO values the assets of Daewoo International including interest in liquid natural gas, crude oil, nickel, copper and metallurgical coal. Daewoo International could not invest in past 10 years due to the financial difficulty. However, POSCO plans to invest to exploration development by Daewoo International and increases the value of the company’s asset.

POSCO evaluate the value of Daewoo International, which has steel trading, raw material and insurance business units, is more than 4 trillion won. The firm estimates the capital for the acquisition is 3.4 trillion yen. The firm seems to evaluate the effect from the merger is more than the spending if the firm borrows 1 trillion won from bank.