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Posco, the world's third-biggest steelmaker, agreed to buy control of Daewoo International for 3.37 trillion won ($2.8 billion) to expand its sales network and gain raw materials as prices climb. Posco will acquire 68.15% of the steel and crude oil trader, the Pohang-based steelmaker said in a regulatory filing on Aug 30.
The purchase price of 49,101.5 won a share is 53% higher than Daewoo International's closing share price on August 27, based on figures derived from the statement.
"Daewoo's expertise in resources development will help Posco invest in mines overseas," Shin Yoon Shik, an analyst with Meritz Securities in Seoul, said. Posco rose 2.6% to close at 497,000 won in Seoul trading.
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