Home / News Type Content Tools: Save | Print | E-mail | Most Read | Comment
Steel Giant Mittal Buys into Chinese Company
Adjust font size:
The National Development and Reform Commission (NDRC) has approved a transaction that gives the world's largest steel producer, Mittal Steel, a stake in a domestic steel company.

 

The NDRC approved the acquisition proposal on Thursday, immediately after the State-owned Assets Supervision and Administration Commission (SASAC) gave the deal the green light.

 

The deal involves Mittal buying 36.673 percent of stocks in Hunan-based Valin Iron and Steel Co. Ltd. (Valin Steel) for 2.7915 billion yuan (US$338 million).

 

State-owned Valin Group, Valin Steel's parent company, will hand 30 percent of its Mittal deal earnings to central finance and use the balance to adjust and upgrade its product mix, said Valin sources.

 

The deal is the largest foreign buy-in to a China A-share enterprise.

 

Under the deal, Mittal will provide technological development, management and marketing support, and will supply Valin Steel with 3 million tons of iron ore in the first year, with an option to increase this amount subject to Valin Steel's demands.

 

Valin Steel produced 7.13 million tons of steel last year, and generated revenues worth 26.2 billion yuan (US$3.18 billion).

 

Mittal's stakeholding in Valin Steel is less than initially intended.

 

In January, Mittal and Valin Group, agreed to a 37.17 percent stake each in Valin Steel.

 

But a new government policy prevents foreign steel companies from acquiring controlling stakes in domestic companies. 

 

These restrictions will be included in a new national steel industry policy, which is expected to be released next week.

 

(Xinhua News Agency July 15, 2005)

Tools: Save | Print | E-mail | Most Read
Comment
Pet Name
Anonymous
China Archives
Related >>
- Steel Producers Prudent on Foreign Investment: Official
- Steel Price Sagging After Gov't Macro-control Measures
- New Steel Policy Expected July
- Expert Calls for Reducing Steel Output
- 'No' to Foreign Control of China's Steel Companies
Most Viewed >>
- World's longest sea-spanning bridge to open
- Yao out for season with stress fracture in left foot
- 141 seriously polluting products blacklisted
- China starts excavation for world's first 3G nuclear plant
- Irresponsible remarks on Hu Jia case opposed 
- 'The China Riddle'
- China, US agree to step up constructive,cooperative relations
- FIT World Congress: translators on track
- Christianity popular in Tang Dynasty
- Factory fire kills 15, injures 3 in Shenzhen

Product Directory
China Search
Country Search
Hot Buys