TORONTO (AP) — Global steel giant ArcelorMittal will sell a 15 percent stake in one of its Canadian iron ore operations to an Asian-led consortium for $1.1 billion in cash.
In the transaction announced Wednesday, a group led by South Korean steelmaker POSCO and China Steel Corp. will enter into a joint venture partnership that will own ArcelorMittal's Labrador Trough iron ore mining and infrastructure assets.
The consortium also includes other investors who were not identified in the announcement.
Peter Kukielski, ArcelorMittal's chief executive for mining, says the deal is consistent with the company's strategy to forge strategic relationships with key customers.
The deal is subject to various closing conditions, including regulatory clearance by the Taiwanese government.
It is expected to close in two installments in the first and second quarters of 2013.