West Australian Iron Ore Companies in $A3billion Merger

Two major iron ore companies in Western Australia have agreed to a $A3 billion merger.

Both Midwest Corporation and Murchison Metals have neighbouring iron ore tenements and would collectively own eight projects in the region.Midwest has supply arrangements with Chinese Steel trader Sinosteel, while Murchison Metals has agreements with Japan's Mitsubishi group.

The merged entity would value each share at $A7.17.

Paul Kopejka, from Murchison Metals, says the merger will help turn the Mid-West region into a world-class iron ore producing region.

Sinosteel itself had previously offered $A1.36billion in cash for Midwest

Sources: ABC, Sydney Morning Herald

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