Tata Steel offers to acquire Brazilian ore miner AVG

11 April 2008

Mumbai: Tata Steel has offered to acquire Brazilian iron ore miner AVG, which is owned by global mineral giant MMX, reports quoting its president Eike Batista said.

He, however, did not reveal the price offered by Tata, but said a deal could be made if Tata guarantees reciprocal investments.

''Tata has offered to build a car plant on the outskirts of Acu Port, the complex MMX is building on the coast of Rio de Janeiro,'' The Steel Business Briefing quoted a Eike as saying.

MMX Mining and Metallics SA, the owner of AVG, may accept the Tata Steel offer, provided the Tatas agree to set up a car plant in Rio de Janeiro. MMX could sell as much as 50 per cent stake in AVG to the Indian steel giant, the report added.

Brazilian media reports also said Tata Group chairman Ratan Tata was planning to invest about $15 billion in Brazil.

"Brazil has a huge potential market. I am naturally attracted to it," a report quoted Tata as saying.