South Korean steel giant POSCO has signed a deal to acquire a 60 percent stake in Malaysian steelmaker MEGS Industries Sdn Bhd (MEGS) for $15.6 million.
The acquisition of MEGS, which mainly produces electrolytic galvanized coils and has an annual production capacity of 120,000 mt, marks POSCO"s first acquisition of a foreign steel company.
The investment will enable POSCO to secure its position in the fast-growing Southeast Asian market, where it has been looking for opportunities. As previously reported, POSCO has already commenced giant greenfield investments in Vietnam.