Posco Seeks Expansion Through Daewoo - TheStreet

NEW YORK (

TheStreet

) -- South Korean steelmaker

Posco

(PKX) - Get Report

has submitted a letter of intent to buy a controlling, roughly $2 billion stake in trade-services company

Daewoo International.

Posco believes the acquisition would have a valuable synergistic effect on the company. Daewoo's trade division has its hand in steel, base metals, chemicals, auto-parts and electronics. Through Daewoo, Posco would also be able to tap into energy developments abroad.

Shareholders, including state-owned Korea Asset Management, have offered to sell at least 50%-plus-one-share of their ownership in Daewoo International.

Posco American Depository Receipts (ADRs) have edged 0.2% higher to $117.40.

In other steel sector news, steel stocks are moving in mixed directions Wednesday morning.

ArcelorMittal

(MT) - Get Report

ADRs are up 1.1% at $38.60, while

AK Steel

(AKS) - Get Report

stock has edged 1.9% lower to $21.80 and

Steel Dynamics

(STLD) - Get Report

is up 1.1% to $16.30.

-- Reported by Andrea Tse in New York

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