Chinese steelmaking giant Sinosteel has won control of Western Australian iron ore miner Midwest, as it has raised its stake in the target company to 50.97 percent.
Sinosteel's share bid for Midwest was pitched at AU$6.38 (US$6.10) cash, up from AU$5.60 (US$5.39) per share at the time of its first filing in December. The total takeover bid for the Australian miner is estimated at AU$1.36 billion (US$1.31 billion).
Furthermore, in line with its interest in ensuring greater supplies of Australian iron ore, Sinosteel has applied before Australia's Foreign Investment Review Board (FIRB) to increase its stake in Australian iron ore miner Murchison, which controls deposits close to Midwest's.
Earlier this week Murchison Metals Ltd dropped its competing plan for a merger with Midwest, stating that it would not relinquish its 10 percent stake in Midwest to Sinosteel.