STX Shipbuilding Co., the world's seventh-largest shipyard, said Tuesday (Oct. 23) that it has purchased a major stake in a Norwegian shipyard for $800 million in an effort to branch out into the European market. The Korean shipbuilder said in a regulatory filing that it has bought a 39.2 percent stake, or 44.56 million shares, in Aker Yards ASA. The purchase was financed with borrowings and new share offerings by its sister companies, STX Shipbuilding said.
Shares of STX Shipbuilding were trading at 65,300 won as of 11:39 a.m., up 10.47 percent.
STX Shipbuilding's second-quarter earnings reached 57.4 billion won ($62 million) from 4.3 billion won a year earlier on rising orders for oil tankers and container ships as well as gains from equity ties with its affiliates.
The major stake in the Oslo-based shipbuilder will help STX Shipbuilding branch into cruise liners, the Korean shipyard said. The European shipyard builds cruise, ferry and offshore facilities.     
Aker, with annual sales of roughly $4.8 billion, has 18 shipyards in eight countries including France and Germany, according to STX Shipbuilding.