Lakshmi Mittal steels into China!
The world?s largest steel manufacturer has reportedly acquired a 37 per cent stake of the state owned steel Valin Iron and Steel mill in China.
Mittal Steel, the world’s largest steel manufacturer has reportedly acquired a 37 percent stake of the state owned steel Valin Iron and Steel mill in China.
The Sydney Morning Herald quoting a report in Xinhua, said that the Chinese government has also reportedly approved the 337 million dollars purchase of the mill in the country’s Hunan province.
While Mittal Steel, based in Rotterdam, Holland was formed last year by the consolidation of two companies, Lakshmi N Mittal’s - Ispat International NV and LNM Holdings NV, Valin Iron and Steel is a subsidiary of state-owned Valin Group.
Valin Group, formed in 1997 has shares traded on the stock exchange in the southern Chinese financial centre of Shenzhen, and claims to have an annual steel production capacity of 8.5 million tons, the report adds.
Earlier, in January, Mittal had while announcing plans to buy Valin said, that it would share management with the Valin group with both the companies appointing board members.
Mittal has termed the acquisition important for Mittal Steel Company.
"Strategically, this is a key acquisition for Mittal Steel Co., as it provides us with our first production platform in the world's fastest growing steel market," Mittal was quoted as saying.