Laiwu Steel: Arcelor share purchase not cancelled

China's Shandong province-based Laiwu Steel Co Ltd has denied reports in the media that China's National Development and Reform Commission (NDRC) rejected Luxembourg-based Arcelor's proposal to buy a 38.41 percent stake in Laiwu Steel Co Ltd from its parent company, Laiwu Steel Group. In February, Arcelor signed an agreement to buy a 38.41 percent stake in Laiwu Steel Co for RMB 2.09 billion ($263.56 million). When this share takeover is completed, Laiwu Steel Group and Arcelor will have an equal amount of shares in Laiwu Steel Co as the two largest shareowners. Laiwu Steel has informed Shanghai Stock Exchange that the deal is still being discussed by the NDRC. However, it is clear that the Chinese government is now being more cautious about this share acquisition and about Mittal Steel's attempts to purchase shares from Hunan-Valin Steel, especially after the Mittal-Arcelor merger.