South Korea’s Hyundai Steel announced plans to merge with sister company Hyundai Hysco as it looks to expand its global footprint in the automotive steel sector.
The deal has been approved at board level and the company will seek shareholder approval at the company’s annual general meeting on 8 May.
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The deal is expected to be finalised in early July following regulatory from the South Korean Fair Trade Commission authorities.
New shares in Hyundai Steel will be issued in lieu of Hyundai Hysco shares.
Hyundai Steel is heavily dependent on Hyundai Motor Group for its business and the deal will help expand the company’s overseas customer base. Hyundai Hysco has sales and technical centres in 11 countries, including China, India, US and in Europe.
The merger will see the emergence of two local automotive steel giants, Hyundai Steel and Posco, with a greater focus on international markets.
Earlier this month Posco announced plans to open a technical centre in Detroit to increase business with US carmakers.
