Four bidders for DSME

POSCO and three other South Korean companies submitted their formal bids yesterday for Daewoo Shipbuilding & Marine Engineering. Korea Development Bank (KDB) said it will pick a preferred bidder in October after allowing POSCO, Hyundai Heavy Industries, GS Group and Hanwha Group to conduct due diligence on Daewoo Shipbuilding for three weeks starting next week.

The deal, estimated to be worth as much as 7 trillion won ($6.48 billion), has drawn much attention from potential bidders as the winner will likely gain a new growth engine from the shipyard’s lucrative energy-related business and strong cash flows.

KDB and KAMCO plan to complete the sale of Daewoo by the end of the year.