South Korean steelmaker POSCO has announced that its subsidiary POSCO Engineering & Construction has sold 38 percent of its shares to Saudi Arabia-based Public Investment Fund (PIF) for approximately KRW1.24 billion.
This transaction is the result of nine months involving due diligence and negotiation after initial receipt of a letter of intent from PIF at the end of last August.
The deal has been concluded within the scope of a Saudi Arabian government plan to promote industrial infrastructure and manufacturing such as the automotive industry in order to respond to the rapidly changing environment of the energy market.
In the future, both companies will work together in the major construction segments in Saudi Arabia, such as railway, hotel and construction developments as ordered by the government of Saudi Arabia, through the establishment of a state-operated construction company as a joint venture.