Korea’s EQ Partners supports ArcelorMittal deal – report

ArcelorMittal will continue to hold an 85% share in AMMC, which owns the Labrador Trough iron ore mining and infrastructure assets, and operate the company as a joint venture with the new investors. As part of the transaction, Posco and China Steel will enter into long-term iron ore off-take agreements proportionate to their investments in AMMC.

According to the deal announcement, the consortium includes certain financial investors. EQ Partners' participation was reported by The New York Times, citing a person familiar with the matter.

The transaction, which still requires regulatory approval from the Taiwan authorities, is expected to close in two installments in the first and second quarters of 2013.

"We are committed to growing ArcelorMittal's mining business," said Peter Kukielski, ArcelorMittal's CEO. "This joint venture incorporating a long-term off-take agreement is consistent with our strategy to forge strategic relationships with key customers as we build our global mining business. The consortium will be an excellent partner as we pursue further expansion at AMMC."

ArcelorMittal, which is controlled by Lakshmi Mittal, became the world's largest steel company through a series of acquisitions but is now divesting assets to reduce its debt burden amid weak construction markets in Europe and the US. The AMMC deal takes the total amount generated through asset disposals since September 2011 to $4.2 billion.

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• Topics
• Industrials
• Infrastructure
• North America
• North Asia
• Greater China
• Taiwan (China)
• Canada
• South Korea
• EQ Partners
• Commodities