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Posco Says May Consider Joining $1.3 Bn GTT Bid

  • South Korean steelmaker Posco said it might consider teaming up with domestic shipbuilders in a €1 billion ($1.3 billion) bid for French engineering company GTT (Gaztransport & Technigaz)The takeover of the maker of cargo containment systems for high-value LNG carriers pits South Korean shipbuilders against Chinese rivals, with the winner poised to dominate the lucrative LNG carrier market for years.
  • A Posco spokesman said it had been approached by the sale’s advisor about participating in bidding and that talks were at a very early stage.“Should there be any request from our customers to join the bid, we may consider taking a minority stake,” the spokesman said.

  • South Korea’s major shipbuilders including Hyundai Heavy Industries Co Ltd and Daewoo Shipbuilding & Marine Engineering Co Ltd are looking at joint forces to acquire GTT.A source familiar with the matter told Reuters that Chinese shipbuilders were also mulling a consorted bid to compete with their Korean peers, declining to give further details.Posco has picked its own advisors to bid for GTT, which is owned by utility GDF Suez SA, oil company Total SA and US private equity fund Hellman & Friedman, and is considering joining the auction as its customers are shipbuilders, the Korea Economic Daily reported.

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