Grown businessmen once again giddy as schoolgirls
I have always loved these kind of stories. Every time some major global consolidation takes place, the Korean press buzzes with news on how a Korean company could be next. Today in the wake of the Mittal-Acelor merger comes talk about POSCO may be taken over by somebody.The talk though does beg the question, "Could POSCO take over anybody?" A quick scan of their balance sheet indicates a good debt to equity ratio, indicating they may have ammo to tap at banks if they want. Also they do need more capacity to meet Chinese demand. However decent Chinese-centric targets are limited. However just to give an idea of the reach POSCO could have, let say the company borrows to make their debt equity ratio 1:1. This equals about US$19 billion. The once mighty US Steel currently has a market capitalization of US$7 billion. POSCO could be a buyer not a seller.
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