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Wuhan Steel inks $400m stake deal with MMX

November 30, 2009 - 06:43 GMT Location: Shanghai

KEYWORDS: steel , iron ore , Wuhan Steel

Wuhan Steel has signed a definitive agreement to pay $400 million for a stake in Brazilian iron ore producer MMX, and to build a 5 million tpy steel mill near Rio de Janeiro, said a mill official.

"We completed signing the agreement today, which includes the stakes transaction as well as the joint venture for building a steel plant," the Wuhan Steel spokesman told MB. Wuhan Steel will be MMX's second-largest shareholder, he said, declining to confirm the stake size. China's third-largest steel mill, Wuhan Steel made a non-binding offer in June to buy 9.09% of MMX for $120 million and 23% of MMX Sudeste, its wholly owned subsidiary, for $280 million (MB June 23). MMX's mines...

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