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ArcelorMittal Bids for Baffinland Iron Mines

By Joel ScanlonNov 9 2010

The world's largest steel producing company, ArcelorMittal, has decided to buy Baffinland Iron Mines Corp for Canadian $433 million. Its subsidiary ArcelorMittal South Africa Ltd which made the bid had been worried about heading into a bidding war with rival Nunavut Iron Ore. However no competing bid is currently expected.

ArcelorMittal has had its eye on Baffinland for a while to ensure supply of raw materials for its steel making industrial mills. The Mary River project owned by Baffinland contains reserves of 365 million tons of iron ore.

ArcelorMittal has offered a bid of Canadian $1.10 per share to Baffinland. This offer is a 16% premium to the closing price on Nov 5, 2010. It is also about 38% higher than the previous bid of 80 cents that Nunavut Iron Ore offered on September 22, 2010.

The Toronto based Baffinland will naturally prefer and recommend the Arcelor Mittal bid to the Nunavut Iron Ore bid. The Luxembourg based ArcelorMittal said that the offer was in line with its strategy of expanding its mining portfolio and selectively adding to its existing pipeline of high quality development project.

Written by

Joel Scanlon

Joel relocated to Australia in 1995 from the United Kingdom and spent five years working in the mining industry as an exploration geotechnician. His role involved utilizing GIS mapping and CAD software. Upon transitioning to the North Coast of NSW, Australia, Joel embarked on a career as a graphic designer at a well-known consultancy firm. Subsequently, he established a successful web services business catering to companies across the eastern seaboard of Australia. It was during this time that he conceived and launched News-Medical.Net. Joel has been an integral part of AZoNetwork since its inception in 2000. Joel possesses a keen interest in exploring the boundaries of technology, comprehending its potential impact on society, and actively engaging with AI-driven solutions and advancements.

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