Arcelor announces deal to acquire Baffinland of Canada
ArcelorMittal, the world's largest steel producer, said Monday it had reached an agreement to buy Canadian mining company Baffinland for 308 million euros.
Baffinland in a separate statement said the accord had been unanimously backed by its board of directors as well as its principal shareholder Resource Capital Funds.
The deal is worth 433 million Canadian dollars (431 million US dollars).
Baffinland specialises in the development of iron ore sites along the Mary River in northern Canada.
ArcelorMittal by November 16 is to send a detailed version of its offer to Baffinland shareholders, who will then have 35 days to respond.
ArcelorMittal has sought to boost self-sufficiency in iron ore in order to lessen its dependence on the three main producers, BHP Billiton, Vale abd Rio Tinto.
Arcelor's production of iron ore is to set rise by 10 million tonnes this year to 50 million tonnes.
© 2010 AFP