Saudi Arabia buys 38 per cent of Korean contractor Posco E&C for $1bn | The National

Saudi Arabia buys 38 per cent of Korean contractor Posco E&C for $1bn | The National:



"The South Korean steel maker Posco has agreed to sell a 38 per cent stake in its engineering and construction division to Saudi Arabia’s Public Investment Fund (PIF) for $1.08 billion.



The Posco chairman Kwon Oh-Joon announced that it would also collaborate with PIF with a view to setting up a Saudi government-run construction firm. The joint venture would target major railroads, hotels and other government-commissioned building programmes in the kingdom.



Saudi Arabia needs more capacity in its contracting market as there are only a handful of companies capable of delivering the country’s mega projects. As a result, several of its flagship infrastructure projects have suffered from long delays."



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