Steel giant eyes off China market

THE world's largest steelmaker, ArcelorMittal, agreed to take over China Oriental Group Co to gain a foothold in the fastest-growing steel market, valuing the company at a minimum of HK$18.6 billion (US$2.4 billion).

Stock in the takeover target surged by the most in 45 months.

ArcelorMittal, which holds 28 percent of Hong Kong-listed China Oriental, offered at least HK$6.355 a share for all the stock it doesn't own, the Luxembourg-based company said yesterday in a statement. That's a 17.7-percent premium to the last traded price.

The takeover may allow Chief Executive Officer Lakshmi Mittal to bypass laws barring overseas control of steelmakers listed in China mainland. The Asian nation has accounted for 65 percent of global growth in steel production in the past 10 years, and is now four times the size of the US steel industry.