Posco diversifies by picking up 15% stake in Canadian minerThe nation’s leading steelmaker Posco said yesterday it has acquired a stake in a Canadian mining company as part of its efforts to diversify its profit sources.
A consortium including Posco has secured a 15 percent stake worth $1.1 billion in ArcelorMittal Mines Canada, the company said in a statement.
Posco will invest $270 million, with China Steel, the largest steelmaker in Taiwan, to pay $540 million for the deal, it said.
The remainder required for the acquisition will be raised from institutional investors in Korea, the company added.
The Canadian mining company mainly produces iron ore and has a capacity of 15 million tons a year, according to the steelmaker.