Posco among four bidders for Arrium as process heads into final stage

Image: ABC News/Nick Harmsen

The second and final stage of bidding for Arrium Australia has seen the field narrowed to four, including South Korean steelmaker Posco through its venture capital arm.

The Australian Financial Review reports unnamed sources saying Posco Capital’s involvement depended on Posco’s technology being part of a site upgrade at the Whyalla steelworks.

Last week Posco were named as bidders by industry minister Greg Hunt – who travelled to Korea with a delegation to meet the steel business – then denied this was the case. A spokesperson said they merely wanted to sell their proprietary Finex technology to the Whyalla site.

On Friday, the day of the second Arrium creditors’ meeting, the company told Reuters that Posco Capital had bid for Arrium.

Last week it was announced that Moly-Cop – which was being sold separately from Arrium – would be acquired by American Industrial Partners, a private equity firm, for $1.6 billion.

The ABC reports that Friday’s creditors meeting, attended by roughly 200 at Whyalla, saw a vote passed to continue with the sale rather than the liquidation of Arrium Australia. A likely due diligence process of the complicated collection of assets would take around two to three months, according to the article.

According to The AFR, lenders were told a full settlement of the sale would be unlikely to happen before March 31, 2017.

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