Posco, China Steel to buy 15% ArcelorMittal arm
3 Jan 2013 6:34 AM IST
ArcelorMittal will sell 15 per cent stake in a Canadian subsidiary that owns Labrador Trough iron ore mine to a consortium led by Posco and China Steel Corporation (CSC) for $1.1 billion. ArcelorMittal Mines Canada, the world’s largest steel maker’s wholly-owned arm, will retain 85 per cent of the joint venture, ArcelorMittal said on Wednesday.
‘Posco and CSC will enter into long-term off-take agreements proportionate to their joint venture interests,’ it added. AMMC, according to information on its website, produces around 15 million tonnes iron ore concentrate and over nine million tonnes of iron oxide pellets annually.
ArcelorMittal, which is facing challenges due to subdued demand in Europe, said the move to sale stake in the iron ore venture is part of its strategy to ‘build strategic relationships with key customers’. Apart from Posco and CSC, the consortium has ‘certain’ financial investors, but their identities were not disclosed. Subject to various conditions, the deal is expected to be closed in two instalments in the first and second quarters of 2013..
‘Posco and CSC will enter into long-term off-take agreements proportionate to their joint venture interests,’ it added. AMMC, according to information on its website, produces around 15 million tonnes iron ore concentrate and over nine million tonnes of iron oxide pellets annually.
ArcelorMittal, which is facing challenges due to subdued demand in Europe, said the move to sale stake in the iron ore venture is part of its strategy to ‘build strategic relationships with key customers’. Apart from Posco and CSC, the consortium has ‘certain’ financial investors, but their identities were not disclosed. Subject to various conditions, the deal is expected to be closed in two instalments in the first and second quarters of 2013..
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