CSRC green lights Mittal's Valin purchase

CSRC green lights Mittal’s Valin purchase

China Securities Regulatory Commission (CSRC) approved the sale of a 36.67 percent stake in Central China's Hunan Valin Steel Tube & Wire Company to Mittal Steel. According to the agreement, the parent company, Valin Group, will sell 6.47 billion shares listed in Shanghai Stock exchange to Mittal Steel for a price of RMB 3.96 per share. The total cost of the acquisition will reach RMB 2.56 billion ($316 million). With the purchase, Mittal will become the second largest shareholder in Hunan Valin steel company. 37.67 percent of the company will still belong to Valin Group. The National Development and Reform Commission (NDRC), the top planning body in the Chinese government, had approved the acquisition proposal earlier, on July 14, 2005. The sale currently is still awaiting approval by the Ministry of Commerce.