Koreajoongangdaily reported that POSCO has been selected as a preferred bidder for a KRW 1 trillion (USD 922 million) deal to acquire a 15% stake in ArcelorMittal Mines Canada
Industry sources with direct knowledge of the matter said that 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.