Nippon Steel will buy a 2 percent stake in Posco worth $465 million, while Posco will spend the equivalent amount to buy an additional 1.64 percent of Nippon Steel to reinforce their capital and business ties.

Nippon Steel, the world's second-largest steelmaker, and Posco, the third-largest, have been discussing how to deepen their relationship after renewing their five-year alliance contract in August last year.

Posco already has a 2.17 percent stake in Nippon Steel, while Nippon Steel owns 3.3 percent of Posco.

The Japan Times Weekly: Oct. 28, 2006
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