SAIL-Posco JV on rocks over share

Dec 04 2012, 02:19 IST
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SummaryPublic sector Steel Authority of India and the world’s fourth largest steel maker POSCO may abandon their planned joint venture to set up a Rs 16,000-crore steel plant in Bokaro, Jharkhand, as the two firms failed to reach common ground over the share of ownership, two persons privy to the development told FE.

budge from their stands to have a minority stake in the company,” said an official on condition of anonymity.

“Even though SAIL seems to be fine with a 50:50 equity sharing, Posco is adamant on 51:49,” the official said.

The officials said that though both Japanese and South Korean companies are tough to negotiate with, SAIL's experience with Japan's Kobe Steel was without much issues. “In comparison, it has been an uphill task to be able to convince the Koreans for equal stake sharing. Let's see if something can be worked out before the expiry of the MoU,” said a source.

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