South Korea firms in bidding race for Korea Express

Worker loading cement bags on a truck
Image caption Logistics is a highly competitive industry and companies are always looking to reduce their costs

Three of South Korea's biggest companies have bid for a controlling stake in Korea Express, the country's biggest logistics firm.

POSCO, Lotte Group and CJ Group have all submitted preliminary bids to buy 37.6% of the firm as they look to reduce their transport costs.

The stake has been put up for sale by Daewoo Engineering and Construction.

The final bids are due on 13 May and the preferred bidder will be announced on 16 May.

Analysts are expecting a strong response, with some predicting that the stake sale could fetch up to 2 trillion won ($1.8bn; £1.1bn).

The sale will be keenly watched as an indicator of merger and acquisition activity in the country this year.

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