SteelOrbis Shanghai
Sources report that Chinese Bayi Steel, Kunming Steel and
Baotou Steel -which were Mittal's targets in its acquisition plan- would not accept Mittal's offers. Bayi Steel turned towards
Baosteel, and Kunming Steel towards Wuhan Steel. It has been reported that
Baotou Steel would not merge with Mittal due to the mine issue.
In Autumn 2005, invited by Xinjiang Autonomous Region,
Baosteel's vice president visited Bayi Steel and they started negotiating. Being a domestic steelmaker is advantage for
Baosteel to acquire the company.
Mittal was also planning to acquire some stake in Kunming Steel. However, Kunming Steel did not accept the bid because Mittal was willing to get the controlling right of the company. Later, Wuhan Steel reached a preliminary agreement with Kunming Steel in order to take over 51 percent of the company. But the agreement has not yet been confirmed.
Mittal has no competitors in its plan to take over
Baotou Steel. However, the Chinese government is not expected to transfer the control of the company to Mittal because
Baotou Steel's Baiyun Ebo mine has abundant iron resources.