SEOUL--South Korean steelmaker Posco (005490.SE) said Tuesday it
and its partners have agreed to purchase a 15% stake in an
ArcelorMittal (MT)-controlled iron ore mining company in Canada for
$1.1 billion.
Posco and its partners agreed on Monday to acquire the stake in
ArcelorMittal Mines Canada Inc., a Seoul-based Posco official Kim
Ji-young told Dow Jones Newswires. She declined to identify Posco's
partners and say how much each partner would be investing.
South Korea's Yonhap news agency earlier Tuesday reported China
Steel will invest $540 million for the acquisition, while Posco
will put in $270 million. Yonhap didn't cite sources for its
report, which also said Posco is looking for other potential
investors, including a Korean pension fund, to join the
consortium.
The acquisition would give Posco, the world's sixth-largest
steelmaker by output, greater access to a key raw material for its
steel production.
Write to Kwanwoo Jun at kwanwoo.jun@dowjones.com
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