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Chinese co may sell 49% to Arcelor Mittal
November 03, 2006 12:51 IST
No other details were provided by the China Daily report. In December last year, Mittal Steel had confirmed that it was involved in talks with Baotou Iron & Steel Group Co Ltd.
Prior to Mittal Steel's acquisition of Arcelor, the latter had signed an agreement with Chinese producer Laiwu Steel Group that will allow the European company to hold a 38.41 per cent stake in Laiwu Steel Corporation.
Mittal last year acquired a 36.67 per cent share in Valin Steel Tube & Wire Co Ltd in central China's Hunan Province.
Meanwhile, Baotou Steel Union Co in North China's Inner Mongolia Autonomous region, a subsidiary of Baotou Iron & Steel Group, plans to pay about 6.97 billion yuan ($882 million) to buy assets from its controlling shareholder to expand, the report said.
The listed steel maker will offer 3.03 billion new yuan-denominated shares to Baotou Iron & Steel Group at 2.3 yuan (29 US cents) each, the company said on Thursday in a statement.
The acquisition will mean that almost the entire group is publicly traded, making it easier for Baotou Steel Union to take over or merge with rivals. China, the world's biggest Steel maker, is encouraging consolidation in the industry to curb overcapacity and boost competitiveness as its economy expands.