POSCO ahead of 2 bidders in synergy with Korea Express
By Kang Seung-woo POSCO is ahead of two other bidders for Korea Express, the nation’s largest logistics company, in terms of expected post-merger synergy, securities analysts say. Along with the steelmaker, retail goliath Lotte Group and food specialist CJ Group, which submitted letters of intent (LOI) in early March, are gearing up to purchase the major stake in Korea Express, each claiming prospects of strong synergy with their respective existing businesses. Market watchers say that the bidding will be a hard-fought given that POSCO and Lotte are already major clients of Korea Express and CJ can rise as a powerhouse in the logistics sector as it would be merging with the group’s existing logistics. Korea Express however is in favor of the world’s No. 3 steelmaker. “POSCO will be able to make the most of joining forces with Korea Express. When POSCO expands to markets overseas, Korea Express can oversee the distribution network and handle the cargo more efficiently,” said a Seoul-based economist on condition of anonymity due to the sensitivity of the issue. “In a
