LNM initiates talks to acquire stake in Valin Group

LNM initiates talks to acquire stake in Valin Group

According to recent news in the market, LNM Holdings, a unit of Mittal Steel, has initiated talks to acquire stake in Chinese state-owned steel plant Valin Group. The government had previously announced that it was open to offers for a majority stake in Henan province-based Valin Group, adding that it was also open to offers for a full takeover of the steel plant. It is stated that the company, which reported sales of Yuan 20 billion ($2.4 billion) in 2003, produced 5 million tons of steel last year. However, the capacity of the plant is expected to be increased to 7 million tons next year. Profit for 2004 is expected to reach Yuan 2 billion ($241 million) against Yuan 1.1 billion recorded last year.