Mittal to acquire Kunming

Mittal to acquire Kunming

The world's largest steelmaker, Mittal Steel, is negotiating with China's Yunnan-based Kunming Iron & Steel Group to acquire the company prior to its initial public offering (IPO). Kunming Steel had planned a March $200 million IPO on the Hong Kong stock exchange, but the company delayed its listing after receiving a considerable offer from a major steelmaker, which turned out to be Mittal Steel. SteelOrbis had reported Mittal's interest in Kunming on April 4 . If the deal proceeds, Kunming will be Mittal's second acquisition in China following the purchase of China's eighth largest steelmaker, Hunan Valin Steel Tube & Wire Co. Ltd. Such acquisitions fit into Mittal strategy of dominating the southern Chinese markets. Several of China's major steelmakers, including Baoshan Iron and Steel Co. Ltd., Angang New Steel Co. and Wuhan Iron and Steel Co. Ltd, have been neglecting the southern Chinese markets.