POSCO, South Korea's top notch steelmaker, on Monday, sealed the deal by buying out 68% stake in Daewoo International, which is a trading and energy firm.

The total worth of the deal is estimated to be 3.37 trillion Won or 2.83 billion Dollars.

With this deal, the officials claim that POSCO would have a ready and consistent supply of raw materials and its holding in the industry would become even stronger as it would open more revenue avenues for the steel giant.

As confirmed by the steelmaker, Daewoo International would be turned into a global Company that would have more than 100 overseas units. Also, it has ambitious plans of nearly doubling the annual sales of the Company, which would touch 20 trillion Won by 2018 as against the sales of 11 trillion Won, witnessed in 2009.

Reports claim that in the month of May, POSCO was chosen as the preferred bidder, despite the sale price being lower that the offer of 3.46 trillion Won, which was the initial offer.

With this deal, Korea Asset Management Corporation (KAMCO), which was the largest shareholder in Daewoo International, has claimed to regain 1.76 trillion Won in public funds.