October 07, 2008

ArcelorMittal awaiting go ahead to control China Oriental Group

It is reported that Global iron & steel giant ArcelorMittal is still waiting for the go ahead from the Chinese government to actually take the helm of China Oriental Group Co Ltd, the biggest private steel maker in its country.

Mr Dirk Matthys CEO of ArcelorMittal China in the recent Far East Steel Conference in Beijing revealed that only around 30% stake in the target company had been held by ArcelorMittal by far and there are a lot of things to discuss in the acquisition negotiation. Mr Han Jingyuan, the chairman of China Oriental Group, is still the majority shareholder by holding a 45.11% stake.

ArcelorMittal has signed an agreement with Mr Han to buy over his holdings at a price no less than HKD 6.12 per share within the agreed period.

ArcelorMittal, which aims to get the controlling stake in the Chinese company, must get through the review and approval from the anti trust unit of the Ministry of Commerce of China.