Mittal Steel completes acquisition of Hunan Valin stake

Mittal Steel completes acquisition of Hunan Valin stake

Mittal Steel Company N.V announced yesterday that it had received final approval for its acquisition of 36.67 percent of China's Hunan Valin Steel Tube & Wire Company (Hunan Valin). Mittal will pay $338 million for the stake. Mittal indicated that since all necessary conditions for the completion of the acquisition have been met, the transfer of the stake is expected to take place over the next few days. SteelOrbis reported last week that China's Ministry of Commerce granted final approval for Mittal Steel's purchase of a 36.67 percent stake in Hunan Valin. Hunan Valin is one of the largest steelmakers in China, boasting an annual steel production capacity of 8.5 million tons. Regarding the acquisition, Lakshmi N. Mittal, Chairman and CEO of Mittal Steel, said: “This is a key strategic transaction for Mittal Steel as it marks our first step into China, the world's fastest growing steel market. We are very much looking forward to our collaboration with Hunan Valin, and are confident that we can help the company further improve on its market position by providing marketing, procurement and technological knowledge and expertise.”