A consortium of companies led by South Korean steel giant POSCO and Taiwan-based China Steel Corp. is investing $1.1 billion for a 15 percent stake in the Canadian iron ore business of Luxembourg-based ArcelorMittal S.A., one of the worlds largest steel producers.
The deal will create a joint venture between the buyers and AcelorMittal Mines Canada that will control iron ore mining assets in Eastern Canadas Labrador Trough. The transaction is subject to regulatory approvals in Taiwan, but is expected close in the first half of 2013.
Korean firm Kim & Chang, led by Seoul partner Jason Lee, is advising the investors. The firm previously also advised Posco on its $30 million investment in FuelCell Energy Inc. last May. Montreal-based Osler, Hoskin & Harcourt partner Shahir Guindi is also acting for the consortium.
Shearman & Sterling is advising ArcelorMittal. The Shearman & Sterling team is being led by partners George Casey and George Karafotias in New York and London, respectively. Last year, the firm also represented ArcelorMittal in the sale of its Skyline Steel and Astralloy steel distribution units to Nucor Corporation for $605 million.
Norton Rose is also advising both ArcelorMittal and its Canadian subsidiary, ArcelorMittal Mines Canada. Partner Dawn Whittaker leading a team that includes other Toronoto partners Eric Reither, Robert Eberschlag and Janet Howard. Montreal-based partner Robert Borduas is leading another Norton Rose team advising ArcelorMittal Mines Canada on the deal.