Solar-Grade Silicon Maker Elkem Targeted for Purchase by Steelmaker Posco
Posco, the world’s third-biggest steelmaker by output, said it is reviewing a possible purchase of Norway’s Elkem ASA, a maker of solar-grade silicon and special alloys.
The company has yet to make a decision, Pohang, South Korea-based Posco said today in a regulatory filing after the Korea Exchange sought a clarification on reports about a potential purchase. Posco has completed due diligence on Elkem and is starting purchase talks, MoneyToday reported today, citing unidentified industry officials. The acquisition may cost more than $1 billion, the report said, without citing anyone.
Posco Chief Executive Officer Chung Joon Yang, who last month completed the takeover of Daewoo International Corp. in the country’s biggest acquisition this year, is spearheading a $30 billion capacity expansion in nations including Indonesia, India and Vietnam. Elkem is part of Orkla ASA, a diversified company with products ranging from frozen pizzas to chemicals.
“It’s positive for us that a large and serious company like Posco is showing interest in some of our assets,” Orkla Chief Executive Officer Bjoern Wiggen said today in an interview. “We aren’t commenting on which parties are in concrete discussions.”
Elkem’s sales last year fell to 7.4 billion krone ($1.3 billion) from 9.1 billion krone in 2008, according to the company’s website. Elkem has about 2,500 employees and runs plants in Europe, the Americas, Africa and Asia.
To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net.
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net; Andrew Hobbs at ahobbs4@bloomberg.net
Rate this Page