Arcelor Mittal, Posco to talk cooperation

SEOUL: An executive of Arcelor Mittal, the world's largest steelmaker, plans to hold talks with the head of South Korea's Posco this week about possible future cooperation, a Posco spokeswoman said Monday.

Roland Junck, a top executive of Europe-based Arcelor Mittal, will meet Posco's chief executive officer Lee Ku-taek on Friday, said spokeswoman Ko Min-jin. "They are going to have a general discussion about which areas they can cooperate in the future," Ko said.

Pohang, South Korea-based Posco is the world's third-largest steelmaker after Arcelor Mittal and Japan's Nippon Steel Corp.

Ko said, however, that the topic of possible mergers and acquisitions will not be on the agenda. "I can clearly say that there is not going to be any discussion on that topic at all," she said. Mittal Steel Co. NV and Arcelor SA agreed to combine last summer, and their merger is expected to be completed by May, subject to negotiations with competition authorities in Europe and the United States.

The merger has focused attention on consolidation and building cooperative relationships within the global steel industry.
Nippon Steel and Posco said in October that they had agreed to reinforce their capital and business ties.

Posco's Lee said earlier this month that his company will seek bigger size, higher quality, lower costs and active strategic partnership with global rivals in what he called the best way to avoid becoming a takeover target.

Shares in Posco rose 2% to 325,000 won ($346; euro268) in late morning trading.