POSCO eyes stake in Korea's largest shipping company

South Korea's leading steel producer, POSCO Group, is considering buying a controlling stake in the country's largest shipping company, HMM Co, as part of its business diversification drive. The steelmaker spends over $2 billion annually on logistics so having its own shipping line would have merit, but Korean shipping industry sources say concluding a deal would not be smooth sailing for the steel giant.

Local media reports last Friday quoted investment banking sources as saying that POSCO has formed an advisory group with Samil PricewaterhouseCoopers and Boston Consulting Group to study the feasibility of buying a one-third piece of HMM and to identify where synergies might be created with other areas of its