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POSCO consortium eying stake in ArcelorMittal mine
Add Time：2012-11-16 00:29:00 Clicks：
According to South Korean financial publication Money, a consortium including South Korean steelmaker POSCO is seeking to acquire a roughly USD 1 billion stake in a Canadian iron ore mine operator controlled by ArcelorMittal.
Money said that the bidding group seeks to acquire about a 10% stake in ArcelorMittal Mines Canada, with POSCO looking to invest USD 200 million to USD 300 million and the rest coming from its partners, Today said citing unidentified sources in the merger and acquisition industry.
It said that Morgan Stanley is advising POSCO.
A POSCO spokeswoman said that the company was studying the possibility of buying a stake in the operator, but nothing had been decided yet.
POSCO is seeking to secure iron ore and coking coal resources, which are key steel-making ingredients, as the world's fourth biggest steelmaker aims to double raw material self-sufficiency to 50% by 2014 from 2010 levels.
ArcelorMittal, the world's largest steelmaker, is exploring the sale of a minority stake in its Canadian iron ore business, sources familiar with the situation had said in October.
One of the sources said that ArcelorMittal has retained RBC Capital Markets and Goldman Sachs to assist in the process, which has been ongoing for a few months, adding that a deal is likely to be announced before the end of the year.
Source - Reuters
