Saudi Arabia?s Public Investment Fund (PIF) has purchased a 38 per cent stake in South Korean steel manufacturer Posco?s subsidiary Posco E&C for US$1.1bn, and will form a joint venture company in the Kingdom of Saudi Arabia
POSCO will be the largest shareholder in POSCO E&C with a 52.8 per cent stake, while PIF will emerge as the second-largest shareholder. The resultant JV will carry out a range of infrastructure projects including the construction of railways, hotels and buildings in Saudi Arabia.
In a statement, Posco said, ?Saudi Arabia has been planning to further develop its manufacturing and industrial infrastructure sectors with PIF as a major agent, in order to respond to the rapidly changing energy and environment markets, and has selected Posco as its business partner in recognition of its experiences and competitiveness, which has been the base of South Korean economic growth.?
The deal was signed by Posco chairman Kwon Oh-joon and PIF secretary general Abdulrahman al Mofadhi. The two officials had signed an MoU in March 2015 to enhance investments in Saudi Arabia?s construction sector.
