ArcelorMittal signs takeover deal with Chinese steel maker

0 Comments | AFP, December, 2007

HONG KONG (AFP) — ArcelorMittal, the world's largest steel producer, said Thursday it had signed a deal to take over China Oriental, as it tries to gain further inroads into the world's biggest steel market.

ArcelorMittal will raise its stake to 73.13 percent from 28.02 percent of shares in the Hong Kong-listed steel maker, the two companies said in a joint statement, a move which will cost around 1.0 billion US dollars.

It will also make an offer to buy out minority shareholders.

The deal still needs the approval of the Chinese Ministry of Commerce and the State Administration for Industry and Commerce, who are yet to permit a foreign owner to take control of a large domestic producer.

The two companies were forced to show their hands after Hong...