Mitsubishi buys Posco shares for $124 million

Mitsubishi Corp. said it has raised its stake in Korea’s Posco, the world’s third-largest steelmaker, at a cost of more than 15 billion yen ($124 million).
Mitsubishi raised its stake in the Pohang, Korea-based steelmaker to 1.4 percent from 0.9 percent, buying 430,000 Posco shares on the market, said a Mitsubishi spokesperson. The additional shares were bought at the end of December.
Mitsubishi plans to strengthen cooperation with Posco as the Korean company expands capacity. Mitsubishi has supported the steelmaker since it was sold by the state.
Mitsubishi shares rose 60 yen, or 2.8 percent, to close at 2,210 yen on the Tokyo Stock Exchange. The shares earlier rose as much as 80 yen, or 3.7 percent, to 2,230 yen.
Posco Chairman Lee Ku-taek requested Mitsubishi President Yorihiko Kojima last autumn to increase its stake to raise the number of stable shareholders in the company, the Nihon Keizai newspaper reported earlier. Nippon Steel Corp. has also agreed to increase its stake in Posco from about 3.3 percent to more than 5 percent.