FTC approves acquisition of Dongbu Steel by KG Group

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FTC approves acquisition of Dongbu Steel by KG Group

The Fair Trade Commission (FTC) approved Tuesday the takeover of Dongbu Steel, Korea’s fifth-largest steelmaker by sales, by a KG Group-led consortium.

Last month, KG Group, a local logistics and chemical business operator, and a Seoul-based private equity firm, Cactus Private Equity, signed a deal with creditors to buy a majority stake in Dongbu Steel for 360 billion won ($304 million).

Under the deal, KG Group will hold a 40 percent stake in the steelmaker.

Dongbu Steel entered a debt workout scheme in 2015. Last year, the company posted 2.5 trillion won in sales and logged an operating loss of 59.6 billion won.

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