Saudi Arabia’s Public Investment Fund (PIF) is reported to be in talks with South Korea’s Posco to buy a stake in Posco Engineering & Construction Company.

The proposed sale is said to involve a 30 per cent share of the company, valued at $920m, reports Reuters citing South Korean newspaper Chosun Ilbo.

The deal is expected to close in June.

MEED reported in February that Posco had signed a preliminary deal with PIF to sell part of Posco Engineering & Construction as the company attempts to unload assets and cope with the steel market downturn.

If the sale goes ahead it will be the latest sale of a South Korean construction company involving a GCC-based investor. Earlier this year, Investment Corporation of Dubai (ICD) acquired a controlling stake in Ssangyong Engineering & Construction. The deal was reported to be worth $181m.