The world's sixth largest steelmaker Tata Steel is planning to acquire the Brazilian iron ore assets of UK-based London Mining (LM).
The acquisition will help Tata to ensure raw material supplies for its Anglo-Dutch subsidiary Corus, which is currently facing a raw material shortage. The value of the assets is expected to be in the range of $2 billion.
Commenting on the possible acquisition, a Tata spokesperson said that they are scanning all opportunities to ensure raw materials security for their global operations. The spokesperson added that they are unable to give any detailed information about the acquisition.
Last month, LM had decided to revise its investment plans in Brazil after various companies expressed interest in the whole or partial acquisition of LM's Brazilian mines. Currently, LM is conducting studies to verify the level of reserves at its iron ore mine in the Serra Azul region in Brazil.