In a stock exchange filing, Posco said it is exploring strategic synergies for future business but has not yet made a final decision on acquiring HMM.
The company has formed an advisory team including Samil PwC, Boston Consulting Group, and leading law firms to assess HMM’s business outlook. The move comes as Posco looks to diversify amid challenges from steel overcapacity in China, weak domestic demand, U.S. tariffs, and a slowdown in the secondary battery sector.
HMM’s largest shareholders are the Korea Development Bank (36%) and Korea Ocean Business Corporation (35.7%). After completing a planned 2 trillion won share buyback program on September 12, both stakes are expected to fall below 30%. Posco is seen as one of the leading candidates to acquire KDB’s stake, a deal that could make it the largest shareholder of HMM.
According to local media, Posco is also considering joint management with KOBC to share financial and operational burdens. Still, challenges remain. KB Securities analyst Choi Yong-hyun noted that around 80% of HMM’s revenue comes from container shipping, while Posco’s logistics strength lies mainly in bulk cargo – potentially limiting synergies.
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