Posco , Asia’s third-biggest steelmaker, was chosen as preferred bidder for a controlling stake in trader Daewoo International Corp. , in what will be Chief Executive Officer Chung Joon Yang ’s biggest acquisition.
Posco , the world’s third-biggest steelmaker, will invest in an iron ore project in Western Australia and seek a stake in a Brazilian mill to expand markets and raw material supplies outside of South Korea.
Posco Chief Executive Officer Chung Joon Yang may make his biggest acquisition with the offer for Daewoo International Corp. , securing mining assets as rising costs spur competition for raw material supplies.
Posco may soon start construction on a $12 billion steel complex in India first proposed in 2005 as Prime Minister Manmohan Singh speeds up the approval process for the nation’s biggest foreign investment.
Daewoo International Corp. rose the most in seven months in Seoul trading after South Korean media reported Posco may be the preferred bidder for the trading company with a 3.4 trillion won ($3 billion) offer.