Arcelor may abandon Laiwu Steel purchase

Arcelor may abandon Laiwu Steel purchase

Beijing's new steel policy has the world's second largest steel group, Arcelor, reconsidering its intention to purchase a stake in China's Shandong province-based Laiwu Steel. China's new steel policy prevents foreign steel companies from obtaining a controlling interest in domestic steelmakers. Arcelor was planning to spend approximately RMB 2 billion ($246.6 million) to purchase a controlling stake in Laiwu, which is listed on the stock exchange as having total capital of RMB 4 billion. According to various reports, Arcelor has not decided whether it will purchase a minority stake or forego the purchase plans entirely.