Thursday, June 26, 2008

ArcelorMittal Signals Intent In China

ArcelorMittal, the world's largest steel producer controlled by Indian billionaire Lakshmi Mittal, intends to acquire a majority stake in a major Chinese steel producer but achieving the goal may take at least five years. That was according to Mr Mittal at a briefing to reporters at the American Metal Market Steel Success Strategies Conference in New York on Tuesday.

The Chinese government may not allow majority stakes for foreigners in the steel industry until it completes regional consolidation, said the chairman and CEO of ArcelorMittal. Striking a positive note, Mr Mittal said that when China decides to let foreign companies in, ArcelorMittal would be ready to replicate the success story of merger of Arcelor and Mittal in China.

ArcelorMittal already holds a one-third stake in mid-sized Chinese steelmaker Valin Steel Tube & Wire Co and a part of China Oriental Group Co, owever, its plans for acquisition of Laiwu Steel Co one of the top 10 steelmakers in China, fell apart.

Source: China Knowledge

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