Arrium Ltd. (ARI) has rejected a A$1.01 billion ($1.05 billion) offer from Noble Group Ltd. (NOBL) and South Korean investors, the highest bid for an Australian iron ore asset since the government declared the mining boom over.
Bloomberg reported Arrium, the international mining and materials company listed on the Australian Securities Exchange, previously known as OneSteel Ltd., turned down the offer from the group, which also included Posco Australia Pty, National Pension Service of Korea, Korea Investment Corp. and Korea Finance Corp., revealing the offer was too low and conditional.
Arrium has three key businesses: Mining, Mining Consumables, and Steel & Recycling. The company is said to have leading market positions in Australian steel through the integrated OneSteel business that includes steel recycling, manufacturing and distribution.
The report revealed, the bidders, grouped under Steelmakers Australia, remain determined in developing a proposal to secure a deal.
Steelmakers Australia brings together companies including China’s Meijin Energy Group Co. in bidding for Australian resources companies following a slump in commodity prices, with iron ore falling 25 percent this year after concerns about a slowing demand from China, which led Resources Minister Martin Ferguson in August to declare an end to the nation’s mining boom. Bloomberg