POSCO Holdings, the parent company of South Korea's POSCO Group, has announced its decision to sell its stake in Japan's Nippon Steel, marking the end of a 25-year cross-shareholding relationship. The move, resulting from mutual consultations, is part of POSCO's broader corporate restructuring strategy to stabilize its financial structure and ensure future growth.
The company valued its stake in Nippon Steel at KRW 467 billion ($321 million) and classified it as assets held for sale. However, the timing and method of the sale remain undecided. This decision follows Nippon Steel's sale of its KRW 1.1 trillion stake in POSCO Holdings in September 2024, intended to finance the acquisition of US Steel.
As of the end of 2024, POSCO had raised KRW 662.5 billion through asset sales and plans to secure an additional KRW 1.5 trillion in 2025 by restructuring 61 businesses. Despite challenges in global demand and reduced steel production in 2024, sales of high value-added products increased. Steel production fell by 1.1% year-on-year to 33.17 million tons, while sales of rolled products decreased by 1% to 32.8 million tons due to blast furnace reconstruction.
