South Korea-based steelmaker POSCO Holdings has decided to sell its remaining shares in Japanese steelmaker Nippon Steel, disposing of roughly 39.2 million shares via a block deal, according to local media reports.
In September, POSCO sold half of its Nippon Steel stake for JPY 25.3 billion ($159.97 million).
The divestment marks the official end of the decades-long “iron alliance” between the two steel giants. POSCO said the move reflects its strategic shift toward core and emerging business areas.
Money to flow into lithium, hydrogen and future-oriented growth
POSCO plans to redirect the funds raised into high-growth sectors, including lithium extraction/processing and hydrogen energy, aligning with global trends toward clean energy and electric-vehicle supply chains.
What this means for the steel and energy-materials sectors
- A strategic pivot away from traditional cross-shareholdings. By shedding legacy equity ties to Nippon Steel, POSCO is sharpening its focus on core businesses and growth sectors - a clear sign of repositioning in a changing market.
- An energy transition play. Redirecting capital into lithium and hydrogen aligns POSCO with global decarbonization trends and EV-battery demand growth, potentially giving it a competitive edge.
Steel business under pressure - but diversified risk. While the global steel market remains cyclical and challenging, POSCO’s diversified portfolio may help buffer against steel sector downturns.