ArcelorMittal weighs tie-up with China's Angang Steel

07 May 2008

The world's largest steelmaker ArcelorMittal, which made an unsuccessful attempt to acquire a 20-30 per cent stake in China's Angang Steel Co Ltd in a $5- billion deal two months ago, now plans to join hands with Angang Steel, to seize more development opportunities.

ArcelorMittal CEO Lakshmi Mittal had, in a letter to Zhang Xiaogang, chairman of Angang Steel, sought to acquire a 20-30 per cent stake in China's second-largest steel producer. 
 
Xiaogang who had then turned it down, did not, however rule out an alternative form of partnership.

According to The Daily Telegraph, the talks were part of Mittal's strategy to increase the company's presence in the Chinese steel industry.

''There is no formal proposal for any kind of joint project involving Angang Steel" ArcelorMittal CEO Lakshmi N Mittal told The Financial Times.

"However, I had an informal discussion with Zhang about various possibilities. As part of this, I tossed around a number of ideas,' he said, adding "This is similar to the discussions I have with many steel companies."

Angang, which is 67 per cent owned by Anshan Iron and Steel, a Chinese government company, is listed on the Hong Kong Stock Exchange.