In a move to ensure a ready supply of iron ore at a steady price, the world’s largest steelmaker is thought to be eyeing a stake for multinational mining group Rio Tinto.
Rio is the currently focus of a long running hostile takeover attempt by rival miner BHP Billiton, which has come under criticism from some quarters worried about the control a combined group could have on iron ore prices.
The same worries have been expressed over the rumours that ArcelorMittal, headed by the world’s fourth richest man, Lakshmi Mittal, is planning to buy a stake in the company, thought to be at least equal to the nine percent purchased jointly by Alcoa and Chinese Government-owned Chinalco earlier this year.
Rio Tinto shares rose up to 2.5 percent on the news and were trading at 5,954 pence, up 111 percent, or 1.9 percent, in mid-morning London trade.
Expansion
ArcelorMittal also announced today, June 30, that it intends to acquire 60 percent of Dubai-based distribution firm DSTC FZCO.
This acquisition is the first step towards the creation of a fully-fledged distribution network in the Gulf Cooperation Council (GCC) area for the distribution of long and flat steel products (beams, plates, hollow sections), said the company in a statement.
“This is an important partnership that will spearhead our distribution network in the Middle East Area”, commented Philippe Darmayan, CEO of ArcelorMittal Steel Solutions & Services.