According to local media reports, South Korean steelmaker Posco has signed a preliminary deal with Saudi Arabia’s Public Investment Fund (PIF) to sell part of its Posco Engineering and Construction (E&C) business, according to reports in the South Korean media.

The deal, which is worth $1.5bn, will see Posco sell an initial 38 per cent stake of its construction business, plus the option of buying further shares of Posco E&C in the future.

South Korean media outlets have reported that the deal is due to be finalised in March.

News agency Reuters reported that Posco Chairman Kwon Oh-joon said the steelmaker would sell a stake in Posco E&C as part of its efforts to unload assets and cope with the steel market downturn.

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