Agreement extended on Laiwu deal with Arcelor
(Shanghai Daily)Updated: 2007-01-05 15:49
Some analysts have said the deal is likely to be quashed because the government fears the impending merger of Arcelor SA and Mittal Steel Co is too powerful and could threaten the Chinese industry.
Still confident
The deal was originally signed by Arcelor and Laiwu. Then-Chief Executive Officer for Arcelor Guy Dolle said he expected approval would come within half a year. An Arcelor executive told Shanghai Daily in November that the company remained confident about securing state approval.
Shares of Laiwu Steel have been suspended since September to allow the company to convert non-tradable state shares to tradable equities. The company said yesterday it will announce the share reform plan by the end of this month and then resume trading in its stock.
Arcelor Mittal, which accounts for a tenth of the world's crude steel output, already has a 29.5 percent stake in China's Hunan Valin Steel Tube & Wire Co, which Mittal bought in 2005. The Arcelor Mittal merger is expected to be completed by June.
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