South Korea’s POSCO Holdings has formally ended its longstanding equity partnership with Japan’s Nippon Steel after deciding to sell its remaining 39.2 million shares through a block deal, according to local media reports.
This follows POSCO’s earlier move in September, when the company sold half of its Nippon Steel stake for JPY 25.3 billion ($159.97 million).
The divestment marks the complete dissolution of the historic “iron alliance” between the two steelmakers. POSCO stated that the exit reflects its strategic shift toward next-generation growth businesses.
Investment redirected into lithium, hydrogen and clean-energy materials
POSCO confirmed that proceeds from the divestment will be invested into lithium extraction and processing, hydrogen energy, and future-focused materials, aligning with global decarbonization and EV supply-chain expansion.
Industry implications
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A clear move away from legacy cross-shareholdings. The sale underscores POSCO’s intent to streamline operations and focus on strategic core sectors.
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Positioning for the energy transition. Redirecting capital into lithium and hydrogen gives POSCO stronger footing in the expanding clean-energy and battery-materials markets.
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Risk diversification amid steel-market pressures. While global steel demand remains cyclical, POSCO’s broader portfolio may help stabilize long-term growth.
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