Posted on June 20, 2008 at 12:59 PM
Filed under: Acquisitions | Deal International | Growth Strategy | Sector Watch | Trends
Tagged: ArcelorMittal , Baosteel Group , China Investment Corp. , Cia. Siderurgica Nacional , Jiangsu Shagang Group , Nacional Minerios , Shougang Group

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Iron ore prices are way up (65% this year), and while stories of stolen manhole covers  abound, China -- the world's top steel producer -- is looking to beef up its iron ore deposits through acquisitions. Jiangsu Shagang Group Co., China's biggest privately owned steelmaker, is seeking to buy a stake in Brazil's Cia. Siderurgica Nacional SA's iron ore unit, according to Blooomberg.com, which valued the unit at $2 billion.

Interestingly enough -- and news to Jiangsu Shagang -- The Wall Street Journal reported that Baosteel Group, Shougang Group, Shagang Group and China Investment Corp. are entering the initial round of bidding for the Nacional Minerios SA unit of CSN. CSN hired Goldman, Sachs & Co. to seek a possible sale of the company.

ArcelorMittal, the world's largest steelmaking company, has been on an acquisition spree in the sector as well. President and CEO Lakshmi Mittal pledged $5 billion for acquisitions in Latin America and has made four buys recently. WSJ also notes that last month it spent $631 million to buy a 14.9% stake in Australia's Macarthur Coal Ltd., the world's largest producer of pulverized coal, a type of coking coal used in steelmaking. - Baz Hiralal

Go to the story from Bloomberg.com
Go to the story from WSJ
ArcelorMittal buying up steel in LatAm


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