Sinosteel makes US$905 mln takeover bid for Australian miner

Sinosteel Corp, a state-owned company directly under the state council has made a US$905 million takeover bid for Australia's mining developer Midwest Corp, to secure supply of steelmaking raw material.

The Chinese company that already owns a 19.9% stake in the Australia miner offered a price of A$5.6 per share which was a 35% premium to Midwest's closing price on Wednesday.

The takeover will reinforce Sinosteel's consistent commitment to Australia's resources industry and, in particular, the development of the mid-west region of Western Australia into a major world-class iron ore production province, Huang Tianwen, president of the Beijing-based company said in a statement.

The deal has been approved by relevant Australian authorities but is still subject to approval from China's industry supervisor.

Chinese steel makers are seeking resources in overseas markets as so to fuel the nation's booming economy.