CC to expand Chinese market via Australia
The biggest
iron ore producer of the US, Cleveland-Cliffs Inc's $465 million cash offer to takeover the Australian Portman Ltd. has been accepted.
Being the leading contender, Cleveland-Cliffs offered A$3.40 per share for the Australian
iron ore producer in a
trading halt held on Monday.
The largest independent
iron ore mining and exploration company in
Australia, Portman Ltd. will be the
production and marketing base of Cleveland-Cliffs for the Chinese market.
The volatility in the
iron ore market and the expectancies that the
iron ore demand of the Chinese market will continue to increase in the forthcoming five years period are the key factors for the company to decide on the acquisition.
The actual price is considered as highly lucrative by the analysts who had valued the sale to come out as around $600 million for the company which was also a part of the first wave to trade with
China.