ArcelorMittal, the worlds largest steelmaker is looking to raise its stake in China Oriental Group, which could make it the first foreign company to control a Chinese steel producer.
A Hong Kong stock exchange filing said ArcelorMittal had upped its interest in China Oriental from 28 percent to 73 percent for an undisclosed sum.
ArcelorMittal are wary of publicising the deal because it wants time to convince China's regulators that the transaction is in country's interest.
The Luxembourg based steel producer has a turnover of some 18 and a half billion euros and employes close to 350,000 workers.
In 2006 ArcelorMittal shipped some 110.5 million tonnes of steel, while China Oriental produced 4 million tonnes, but is looking to increase capacity 150 percent to 10 million tonnes by 2010.
However, China, despite courting global business players, forbids foreign control of major steel makers a major sticking point, which has deterred would be buyers.
Oriental, which was privatised in 2001, is registered in Bermuda and, although it manages a Chinese steel outfit it is a private, overseas company.

euronews


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