On January 7, the world's largest steelmaker Luxembourg-based ArcelorMittal reaffirmed that its offer to purchase all shares of Canadian miner Baffinland Iron Mines Corporation (Baffinland) provides certainty and transparency to shareholders, and is superior to the coercive partial offer by Canada-based Nunavut Iron Ore Acquisition Inc. (Nunavut Iron), a subsidiary of US-based Iron Ore Holdings, LP.
On January 3, Nunavut Iron increased its offer to acquire 49.7 percent of Baffinland's shares, excluding the 10.3 percent of the common shares owned by Nunavut, at a price of C$1.45 (US$146.1) in cash per common share which can be taken up pursuant to the amended Nunavut offer. Nunavut Iron's previous offer was C$1.40 per share, again to acquire a total of 60 percent of Baffinland shares.
On December 31, ArcelorMittal increased its offer to purchase all shares of Baffinland to C$1.40 ($1.41.1) per share, from the previously announced C$1.25 ($1.25) per share, valuing the company at C$551 million ($554 million) with the latest offer.
Both offers are to end on January 10 and the Baffinland board backs ArcelotMittal's offer.
Baffinland's Mary River project has proven reserves of about 365 million metric tons of ore, grading an average of 65 percent iron, and about 500 million mt of ore resources. For some months now Baffinland has been looking for partners for the C$4 billion (US$4 billion) project, which is expected to produce 18 million mt per year.
ArcelorMittal has already received the necessary approvals for acquisition from local authorities.