POSCO Group plans to sell its 1.5% stake in Nippon Steel, concluding a quarter-century equity relationship that began in 1999. The decision comes after the Japanese steelmaker announced last September it would divest its 3.4% POSCO Holdings stake to help finance its US Steel acquisition.
A POSCO representative confirmed both companies agreed to sell their cross-shareholdings to secure cash, though timing and method remain undetermined. The Korean company’s Nippon Steel stake was valued at approximately 460 billion won ($336 million) as of last year.
Despite unwinding their mutual shareholdings, both steelmakers emphasized their strategic alliance will continue. The equity relationship has been significant in the global steel industry, likely involving technology exchange and joint research efforts.
The divestiture aligns with POSCO’s broader corporate restructuring initiative. By the end of last year, the company had generated 662.5 billion won ($484 million) through rebalancing 45 assets, including selling a heavy oil power plant in Papua New Guinea.
POSCO aims to secure an additional 1.5 trillion won ($1.1 billion) this year by restructuring 61 businesses as it focuses on stabilizing its financial structure and securing future growth.
