POSCO International to merge with POSCO Energy
POSCO International's headquarters in Songdo, Incheon / Courtesy of POSCO InternationalBy Kim Jae-heunPOSCO Group is combining its trading arm, POSCO International, with its power generation unit, POSCO Energy. The merger was authorized at a board meeting on Friday. POSCO International plans to finalize the merger deal on Jan. 1, 2023, after obtaining approval at a general shareholders' meeting scheduled for Nov. 4.When POSCO International and POSCO Energy are combined, it will become a major company with sales of about 40 trillion won ($30.7 billion) and an operating profit of more than 1 trillion won.The merger ratio between the two companies is 1 to 1.1626920, calculated based on POSCO International's asset value and POSCO Energy's intrinsic value. POSCO International, a listed company, will issue new shares according to the ratio and hand over 46.78 million shares to POSCO Holdings, a shareholder of POSCO Energy. POSCO International's new shares will be listed on Jan. 20, 2023. After the merger, POSCO Holdings will own a 70.7 percent stake in the trading arm. POSCO Energy's LNG T
