The leading private steel maker company in India, Tata Steel has recently made an aggressive attempt and offered the Brazilian iron ore miner AVG, for acquiring the company. The sources from the company have stated that the AVG is being promoted by the international mineral giant MMX and Tata Steel is thinking of acquiring the company for expanding its business further.
The news of Tata Steels offer for acquiring the AVG has been conveyed by the Steel Business Briefing (SBB), that quoted a MMX President, Mr. Eike Batista confirming the news of getting the offer. The SBB reported, "Eike, however, did not reveal the value offered by Tata, but said a deal could be made if Tata guarantees it will build a carmaker on the outskirts of Acu Port, the complex MMX is building on the coast of Rio de Janeiro". SBB also informed that if the acquisition eventually takes place, the MMX is likely to sell as much as a 50 per cent stake in the AVG to Tata Steel.
When contacted, however, none of the spokespersons from the Tata Steel did agree to say anything about the news and they have not confirmed it as well. The industry sources have informed that MMX purchased the AVG in the last year for a huge investment of $224 million and the company is currently having a capacity of producing around 2.3 million tonnes per year. However, the sources added that MMX has already announced that it is thinking of integrating this asset into its recently acquired company, the Minerminal mineral and it is also planning to expand the combined out put of the two companies to 6.1 million tonnes within this year. The sources further informed that MMX is also aiming to increase the production capacity up to 10 m.t. by the year of 2010.
|
|
|
|
|
| Posted : 4/12/2008 |
|
| Browse through Product Directory of JimTrade.com which offers an exhaustive data on Products of Services where as Suppliers Directory of JimTrade.com provides a detailed information on Suppliers of Services |
|
|
|
