The world's largest steelmaker ArcelorMittal has announced that it has entered into an agreement to acquire a 28 percent equity interest in China Oriental Group Company Limited from Smart Triumph Corporation. As a result of the acquisition worth $647 million, ArcelorMittal has become the second largest shareholder of the company.
China Oriental Group Company Limited mainly manufactures and sells steel products such as billets, strips, H-beams, cold rolled and galvanized strip through its main operating subsidiaries, Hebei Jinxi I&S in Hebei Province and Foshan Jinxi in Guangdong Province.
The acquisition in question enables ArcelorMittal to boost its presence in China, which, with its important and fast growing steel industry, constitutes an important part of ArcelorMittal's corporate strategy. As previously reported by SteelOrbis, in line with this strategy ArcelorMittal recently acquired a 90 percent stake at a cost of $26.6 million in China's Shandong Province-based steel cord and wire drawing company, Rongcheng Chengshan Steelcord.