Posco top bidder for stake in Canadian iron ore mine

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Posco top bidder for stake in Canadian iron ore mine

Posco, the world’s fourth-biggest steelmaker, has been selected as a preferred bidder for a 1 trillion won ($922 million) deal to acquire a 15 percent stake in ArcelorMittal Mines Canada, industry sources with direct knowledge of the matter said yesterday.

The two sides are expected to hold negotiations for a formal deal, the sources said, without elaborating on a specific time frame for the deal with the subsidiary of ArcelorMittal, the world’s No. 1 steel company.

The National Pension Service, Korea’s national pension fund and the world’s fourth-largest pension fund manager, has forged a partnership with Posco to buy about a 15 percent interest in ArcelorMittal Mines Canada, the sources said asking not to be identified, citing the issue’s sensitivity.

ArcelorMittal Mines Canada, one of Canada’s leading suppliers of iron ore to steel markets around the world, produces some 15 million tons of iron ore concentrate and over 9 million tons of iron oxide pellets annually. The deal, if formally signed, would help Posco secure a stable supply of iron ore, a key ingredient in making steel, according to the sources.
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