APP reported that China privately owned Hanlong Group has close to finalizing the acquisition of Australia's Sundance Resources, a mining firm that controls a major iron ore mine in West Africa.
Such a move would give China a stronger role in setting global iron ore prices.
China's official said that Hanlong plans to complete the acquisition of Sundance Resources for 45¢ a share by March 1st, after submitting paperwork to the Australian Securities and Investments Commission. The report cited officials from Hanlong, based in southwestern China's Sichuan province.
The prospect of a takeover appeared remote earlier this month following Hanlong's request to delay the bid because it could not secure funding by December 13th.
Even so, Sundance directors continued to explore options to strike a deal with Hanlong. Sundance controls the Mbalam iron ore mine, which straddles Cameroon and the Republic of Congo.
The report said that Hanlong is seeking a partnership with Chinese state owned companies and investing USD 4.8 billion to develop the Mbalam project and to build a 550 kilometer railway and a shipping port. Operations are expected to begin in 2014.
As the world's second-largest economy, China is eager to acquire overseas assets and resources to feed its rapid growth.
Source:
http://www.steelguru.com/raw_material_news/Sundance_and_China_group_deal_close/297000.html
