(Bloomberg) — A spat between two wealthy South Korean families over the future of an $11 billion zinc empire has descended into a bitter battle for control that could hamper efforts to diversify the global supply of energy-transition metals.
The power struggle over Korea Zinc Co. — founded by two friends who fled North Korea, and still held by the Choi and the Chang families — has captured headlines. Even in a country of large conglomerates, where inheritance fights are common, few involve private equity backers stepping into the ring to stand against wealthy establishment names.
Tensions have been running high for many months over strategy and spending, but they reached boiling point in September with a surprise takeover bid from the Chang family’s conglomerate, Young Poong Corp., and private equity outfit MBK Partners, since sweetened to value Korea Zinc at 15.5 trillion won ($11.6 billion). Multiple press briefings and campaigning newspaper advertisements have followed.
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