South Korean steel major POSCO has clinched the deal to acquire Daewoo International in a $3 billion bid, beating rival Lotte Group, media reports said today.

Posco, Lotte and the Jihan Global consortium had, in March, submitted preliminary bids for a controlling stake in Daewoo International. Jihan, however, didn't submit a final bid.

POSCO and the Lotte Group have submitted final bids for acquiring up to 68 per cent in energy developer Daewoo.

Last week, S Korean newspap0er the JoongAng Ilbo reported that Posco had offered around 3.5 trillion won ($3 billion) for a majority stake, trumping retailer Lotto's 3.4 trillion won (See:   POSCO trumps Lotto with $3 billion final offer for Daewoo International: report) 

The state-run Korea Asset Management Corp (KAMCO), which holds the majority stake in the bankrupt Daewoo International, said it has chosen POSCO as the preferred negotiator in the two-way auction with the Lotte Group.

"We factored in the bid prices most where POSCO outrivaled Lotte. In non-financial segments, POSCO also was tantamount to Lotte. Hence, we came up with a decision in favor of POSCO,'' reports quoted a KAMCO official as saying.

Posco's bid price was above 3.4 trillion won ($3 billion), slightly above Lotte's 3.3 trillion won bid. Posco also led in other parameters like business synergy and was the preferred bidder.

The acquisition of the 68 per cent stake in South Korea's biggest trading firm Daewoo International, will help Posco secure raw materials.

Daewoo International specialises in exploring overseas resources and the acquisition of Daewoo will give Posco exposure to major assets such as an 8 trillion won gas development project in Myanmar, a nickel project in Madagascar and coking coal projects in Australia.

Posco currently depends almost completely on imports of iron ore and coking coal.

Posco is planning to expand its supply base through acquisitions and has earmarked a record 9 trillion won ($8 billion) investment spending this year.