BEIJING: Indian billionaire Lakshmi Mittal- led ArcelorMittal, the world's biggest steelmaker, has become the first foreign company to acquire controlling stake in a Chinese steel firm -- China Oriental -- in a deal valued at about $1.6 billion (over Rs 6,000 crore). Hong Kong-listed China Oriental is a holding company for Heibei Jinxi Iron and Steel Company Limited, one of China's largest suppliers of steel billets.
According to a filing with the Hong Kong Stock Exchange, ArcelorMittal acquired 73.13 per cent stake in China Oriental for about 12.2 billion Hong Kong dollars.
ArcelorMittal acquired 820 million shares on November 6, amounting to a 28.02 per cent stake, which it has raised to 2.14 billion shares or a 73.13 per cent stake since then.
The two companies are yet to formally announce the change in the controlling shareholding structure of China Oriental, pending the transfer of the shares.
ArcelorMittal on Thursday said in a statement from Luxembourg that it "is in talks with the controlling shareholders in China Oriental Group Ltd (COGL) about future co-operation and including increasing its stake in the company".
However, ArcelorMittal confirmed that it owns a 28 per cent stake in COGL. Trading in COGL shares has been suspended since November 7, pending the release of "an announcement which may be price sensitive in nature", the company said in a filing with the exchange.
