Arcelor to buy a stake in Laiwu Steel China

Arcelor to buy a stake in Laiwu Steel China

Arcelor SA is the world’s second largest steel company after Mittal Steel and is being pursued by Mr. LN Mittal for acquisition. However, Arcelor is showing signs that they are doing rather well and are not interested in being acquired by Mittal Steel.

Arcelor has now revealed that they have agreed to buy a 38.41 percent stake in Laiwu Steel Corporation, which is based in China. This stake is worth around $249 million if the current share prices are considered. However, the transaction price of the deal is yet not revealed in the media.

The company is working hard on expanding its operations outside the European markets and recently expressed their interests in establishing a presence in the Indian market. China is also one of the emerging markets and Arcelor wants a piece of the pie in the steel market here.

Laiwu Steel added in a statement that its parent Laiwu Iron & Steel Group would sign an agreement today on a transfer of shares in the listed unit. They have however not revealed the name of the buyer.