South Korean steel producer POSCO has bought a 10 percent stake in Australian coal producer Macarthur Coal from Talbot Group Investment at a price of AU$20 per share (US$9.6 per share).
Commenting on the purchase, Macarthur Coal chairman Keith De Lacy said, "We have a long-term relationship with POSCO as a customer and we are pleased they have expanded the relationship to become a substantial shareholder of Macarthur Coal."
By acquiring the 10 percent stake in Macarthur Coal, POSCO has joined other steel producers such as ArcelorMittal and China's Citic among Macarthur Coal's shareholders.
The move will allow POSCO to guarantee coal supplies from Australia to its South Korean operation.