POSCO Selected as a Preferred Bidder for Daewoo International

Tuesday, May 25, 2010

POSCO has been selected as a preferred bidder for Daewoo International. The Public Fund Oversight Committee (PFOC) held continuous meetings at the Korea Deposit Insurance Corp. (KDIC) with the Sales Review Subcommittee on May 14th and selected POSCO as the final preferred bidder for Daewoo International.

POSCO plans on utilizing all cash assets to take over the creditor`s shares of 68.15% in Daewoo International without external loans.

By acquiring Daewoo International, POSCO plans on strengthening its competitive edge in the steel industry, focusing on amplifying the synergy to grow with affiliates.

POSCO also plans to foster Daewoo International as a world class global network company with more than 100 offices worldwide and sales of 20 trillion KRW by 2018 through various development projects centered on the trading company, resource development, and new business development.
First, based on the network Daewoo International has accumulated, a strong global sales channel centered on undeveloped areas such as the Middle East and Africa will be built to actively solve POSCO`s overseas steel sales supply, continuously increasing due to expanded facilities.

POSCO is considering assigning new supplies regarding steel product exports to Daewoo International with priority while assuring existing supplies handled by other trading companies.

Also, POSCO will secure resources based on know-how of overseas resource development project such as Australia`s Narrabri bituminous coal mine and Madagascar`s Ambatobi nickel mine carried out by Daewoo International. POSCO also plans to secure its position as a global comprehensive materials supplier by actively securing scarce metals including magnesium, lithium, titanium, and zirconium. In addition, overseas energy exploration and development projects, including the gas development of Myanmar, Peru and Vietnam petroleum development, will be expanded so that POSCO E&C, POSCO Power and other related affiliates can create synergy abroad, while finding various new businesses such as the new city development in overseas or marine structure businesses.

Meanwhile, Chairman Chung sent out a thank you email to all employees regarding being selected as the preferred bidder for Daewoo International on May 14th and added that everyone do their best in post-merger integration to bring harmony between Daewoo International`s spirit of challenge and POSCO`s strong corporate culture.
Sangwook Oh

Source: POSCO