Reuters reported that ArcelorMittal (NYSE:MT) will sell its 15-percent stake — worth $1.1 billion — in ArcelorMittal Mines Canada, its Canadian unit, to a consortium that includes China Steel (TPE:2002) and South Korea’s POSCO (NYSE:PKX).
As quoted in the market news:
It is the latest in a series of steps to raise funds as slow global economic growth and spending cuts in Europe dampen demand for steel used in the car and construction industry.
“It’s one of the more readily disposable parts of the business, and given they need to reduce debt I don’t think its a massive surprise they are selling it,” said Nomura analyst Neil Sampat.
As part of the deal announced on Wednesday POSCO, China Steel and ArcelorMittal Mines Canada will enter into long-term iron ore supply agreements, ArcelorMittal said.