CC to expand Chinese market via Australia
The biggest iron ore producer of the US, Cleveland-Cliffs Inc's $465 million cash offer to takeover the Australian Portman Ltd. has been accepted. Being the leading contender, Cleveland-Cliffs offered A$3.40 per share for the Australian iron ore producer in a trading halt held on Monday. The largest independent iron ore mining and exploration company in Australia, Portman Ltd. will be the production and marketing base of Cleveland-Cliffs for the Chinese market. The volatility in the iron ore market and the expectancies that the iron ore demand of the Chinese market will continue to increase in the forthcoming five years period are the key factors for the company to decide on the acquisition. The actual price is considered as highly lucrative by the analysts who had valued the sale to come out as around $600 million for the company which was also a part of the first wave to trade with China.