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POSCO Energy acquires Tongyang Power for $431 billion

2014/06/18 17:58

SEOUL, June 18 (Yonhap) -- POSCO Energy Co., a unit of South Korea's top steelmaker, POSCO, said Tuesday it will acquire Tongyang Power Inc. for 431.1 billion won (US$421.8 million) in a bid to expand its energy business.

The board of directors of POSCO Energy approved the plan to buy all shares of Tongyang, to be completed on Aug. 24.

"The acquisition is aimed at diversifying the company's businesses by tapping into the thermal power plant development projects," POSCO Energy said in a release.

Tongyang Power has a license to operate a 2-million-kilowatt capacity thermal power plant.

POSCO last month announced its business strategy aiming for an annual consolidated operating profit of 5 trillion won by 2016, focusing on industrial materials and clean energy.

POSCO is also considering acquiring Dongbu Steel's Incheon plant and Dongbu Power Dangjin Corp., which are under the wing of credit-crunched Dongbu Group.

ejkim@yna.co.kr

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