POSCO Group is bringing together POSCO International, which does business, and POSCO Energy, which makes electricity. At a board meeting on Friday, the merger was given the green light. The steel company holding company plans to finalise the merger deal on January 1, 2023, after getting approval from shareholders at a meeting on November 4.
POSCO International and POSCO Energy will become one big company with sales of about 40 trillion won ($30.7 billion) and an operating profit of more than 1 trillion won.
Based on the value of POSCO International’s assets and the value of POSCO Energy’s assets, the merger ratio between the two companies is 1 to 1.1626920.
POSCO International, which is a public company, will give POSCO Holdings, which owns shares in POSCO Energy, 46,78 million new shares based on the ratio. On January 20, 2023, POSCO International’s new shares will be put on the stock market. POSCO Holdings will own 70.7% of the trading arm after the merger.
POSCO Energy’s LNG Terminal in Gwangyang, South Jeolla Province. Photo: POSCO International.
The two affiliates were brought together to prepare for changes in the energy market caused by the global supply chain crisis and to help the group’s energy business grow in both size and quality.
Through the deal, POSCO International will finish all stages of natural gas projects, from finding the gas to producing it, storing it, and turning it into electricity. It also speeds up its growth by investing in projects that are good for the environment and use renewable and hydrogen resources.
“The merger is the first step in restructuring the group’s business to ensure synergy after it became a holding company. It will also help POSCO International become an important part of POSCO Group. The trading arm wants to speed up its investments in growth, which will boost the value of POSCO Holdings in the near future POSCO Group said.
Through the deal, POSCO International will finish all stages of natural gas projects, from finding the gas to producing it, storing it, and turning it into electricity. It also speeds up its growth by investing in projects that are good for the environment and use renewable and hydrogen resources.
“The merger is the first step in restructuring the group’s business to ensure synergy after it became a holding company. It will also help POSCO International become an important part of POSCO Group. The trading arm wants to speed up its investments in growth, which will boost the value of POSCO Holdings in the near future POSCO Group said.
