Mittal signs deal to acquire Hunan Valin Steel

Mittal signs deal to acquire Hunan Valin Steel

According to the statement released by Mittal Steel Company N.V, the company has signed a deal with Hunan Valin Iron & Steel Group Co to acquire 37.17% of the outstanding shares of Hunan Valin Steel Tube & Wire Co Ltd, a subsidiary of Valin Group, for $314 million. As previously reported by SteelOrbis, Mittal Steel announced that it planned to purchase stake in Hunan Valin Tube & Wire Co Ltd. Hunan Valin is one of the largest steel producers in China with an annual steel production of 8.5 million tons. With the completion of the transaction, Mittal Steel and Valin Group will have an equal shareholding of 37.17% each. The completion of the transaction is subject to the approval of the relevant regulatory authorities in China. Moreover, Mittal Steel plans to acquire three more steel plants in Eastern Europe and Turkey at a cost of $1.5 billion. In Turkey, Mittal Steel plans to bid for $1 billion for Eregli Demir Celik Fabrikalari (Erdemir). The second plant Mittal plans to take over is Czech Vitkovice Steel. The company also wants to take over Polish steel producer Huta Czestochowa.