2024-12-26
SEOUL, Dec. 26 (Yonhap) — A member of the United States Congress has expressed concerns over private equity firm MBK Partners Ltd.’s takeover bid for Korea Zinc Co., together with its biggest shareholder, Young Poong Corp., due to critical minerals’ supply chain issues, the zinc company said Thursday.
Korea Zinc has been caught in a monthslong battle to fend off a takeover bid by the MBK-Young Poong alliance, which initiated the management tussle on Sept. 13 by launching a tender offer for an additional stake in the world’s biggest refined zinc smelter.
In response, Korea Zinc, with the support of U.S.-based Bain Capital, conducted a massive stock buyback.
In his letter sent to Jose Fernandez, U.S. undersecretary of state for economic growth, energy and the environment, U.S. Rep. Eric Swalwell (D-CA) said, “Korea Zinc has maintained its position as a global leader in allied efforts to expand and diversify the supply of critical minerals and insulate these supply chains from PRC leverage.”
PRC is short for China’s official name, the People’s Republic of China.
Korea Zinc is vital to U.S.-led global efforts to loosen China’s grip on the supply of metals for energy transition.
Given the focus and investment track record of MBK, it is possible that PRC-based or PRC-financed entities may be welcomed into a variety of transactions in case of the MBK side’s acquisition of Korea Zinc, Swalwell said in the letter.
“This could result in technology transfer to PRC entities as well as the dismantling of an important global player in the joint United States-Korea effort to insulate and expand critical minerals supply chains from the PRC,” Swalwell said.
