E United Group again proposes to acquire shares in Eng Iron, taking more than half of domestic stainless steel market share
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Update time : 2023-08-14 15:58:17
Yieh United Steel Corp. (Yusco) and Yieh Phui Enterprise Co., Ltd. (Yieh Phui), steel enterprises under E United Group, announced that the board of directors decided to apply again to Taiwan’s Fair Trade Commission for their plan to jointly operate Tang Eng Iron Works Co., Ltd.
Yusco planned to acquire around 6% share of Tang Eng through its subsidiary Longyuan, and Yieh Phui intended to obtain 8.84% and 2% shares through its subsidiaries Shin Yang Steel and Guochang, respectively. Coupled with the existing holding shares of 31.16%, Yieh Phui will own 42% of Tang Eng.
Yusco’s stainless steel sales accounted for 16.3% in Taiwan last year, and Tang Eng occupied 8.6%, totaling 24.9%. If E United Group can successfully complete the acquisition, it will be able to take more than 50% share in the domestic stainless steel market. Yieh Phui said the acquisition can create the synergy of industry integration of one plus one is greater than two.
However, Tang Eng is a company controlled mainly by government shares, with major shareholders including the Ministry of Economic Affairs, Bank of Taiwan, and China Steel Corporation. It is still unknown if E United Group can acquire the equity of Tang Eng.
