Australian iron ore giant BHP Billiton may to launch a $3.16 billion bid for Brazilian iron ore miner Ferrous Resources to expand its iron ore reserves, according to UK media sources.
The talks between BHP Billiton and Ferrous Resources started earlier this year and have stepped up in recent weeks. Another option was for BHP to take a stake in Ferrous Resources rather than launch a full takeover.
Previously, Ferrous Resources had considered raising several billion dollars to develop its Viga mine in the Minas Gerais state in Brazil by initial public offering (IPO); however, the plan was abandoned due to the global economic uncertainty.