By Fanny Liu
TAIPEI--Taiwan's China Steel Corp. (2002.TW) said Wednesday it
has bought a 3.68% stake in an ArcelorMittal (MT)-controlled iron
ore mining company in Canada for $270 million.
China Steel said in a statement it bought the stake as part of a
Posco (005490.SE) consortium that agreed to buy 15% in the Canadian
firm for $1.1 billion.
China Steel, Posco and "certain investors" have entered a joint
venture partnership that will own ArcelorMittal's Labrador Trough
iron ore mining and infrastructure assets, the Taiwanese steel
maker said.
The investment could raise China Steel's iron ore feedstock
self-sufficiency ratio by 4.2% to 11.6%, it said without providing
further details.
The deal is subject to the Taiwanese government's approval and
is expected to close in two installments in the first and second
quarters of 2013, the company said.
Write to Fanny Liu at fanny.liu@dowjones.com
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