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Sunday, November 22, 
10:03 am

ArcelorMittal looks to Brazil for growth

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The world is getting smaller for ArcelorMittal. The world's No. 1 steelmaker agreed Monday to acquire a 49% stake in Brazilian iron ore and manganese miner Mineração Pirâmide Participações Ltda., days after announcing plans to expand in South America's biggest steel market.

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Luxembourg-based ArcelorMittal said the price has yet to be determined and would depend on the amount of iron ore and manganese reserves controlled by the Brazilian group.

In a separate initiative announced Thursday, ArcelorMittal said it would invest $1.6 billion in its Brazilian long-carbon operations to boost its output in the country by two-thirds from 3.9 million tons to 6.5 million tons in the next two and half years.

"This investment represents a continuing development in our strategy of upstream integration," said Sudhir Maheshwari, a member of ArcelorMittal's management board with responsibility for M&A, in a statement. "Securing supplies of iron ore is an important part of that strategy and will contribute to the future sustainability of our business." - Paul Whitfield


See TheDeal.com: ArcelorMittal buys Brazilian miner





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