ArcelorMittal announced Monday that it has reached an agreement to buy Canadian mining company Baffinland for 308 million euros, equivalent to US$431 million or C$433 million, to secure iron ore supplies and lessen its dependence on BHP Billiton, Vale, and Rio Tinto. Baffinland currently contains reserves 365 million net tons (nt) of iron ore.
Baffinland officials have stated that the acquisition had been unanimously supported by its board of directors, and ArcelorMittal now has until November 16 to send the offer to shareholders of Baffinland stock who will then have 35 days to issue a response.
Aditya Mittal, Chief Financial Officer and member of the Group Management Board of ArcelorMittal commented, "The Offer is in line with ArcelorMittal's strategy of expanding its mining portfolio and selectively adding to its existing pipeline of high quality development projects. ArcelorMittal already has a significant iron ore presence in Canada through ArcelorMittal Mines Canada and has the technical and project management expertise to develop the Mary River property."