Posco says didn't have M&A talks with Arcelor Mittal during meeting

SEOUL (MarketWatch) -- South Korea's Posco (005490.SE) said Friday its chief executive has met with an executive of Arcelor Mittal and reached an agreement about opening a dialogue between the two global steel makers to discuss potential areas of cooperation.

Earlier Friday, Roland Junck, a member of Arcelor's Group Management Board, visited Posco's plants and met the Korean company's chief executive, Lee Ku-Taek.

The two executives also agreed to cooperate if it contributes to the development of the global steel industry, said Posco in a statement.

The two sides didn't discuss any issues related to possible mergers and acquisitions between the two companies, Posco said.

During the meeting, Junck asked Posco about the possibility of cooperating through joint investments in countries including Asia and Mexico, Posco said.

Lee responded that Posco would cooperate with Arcelor if both companies can benefit.

An Arcelor spokesman declined to comment on Posco's statement.

Posco's shares gained a total of 7.8% this week on speculation about possible M&A talks between Posco and Arcelor Mittal.

Arcelor Mittal is the world's largest steelmaker by output.