MMK to acquire Flinders Mines Limited
A deal has been reached that will net Flinders Mines Limited some AU$554 million.
Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) is to acquire Flinders Mines Limited for AU$554 million (£347 million).
It means MMK will get its hands on a high-quality iron ore development project, while it will also add to the resource base it has.
Victor Rashnikov, chairman of the board of directors at the firm - whose revenue in 2010 was $7,719 million (£4,971 million) - said he was "delighted" that the business negotiations have been completed.
"This transaction represents another important step forward for MMK to become [a] highly efficient vertically integrated international metals and mining company," he added.
The deal has been earmarked for completion in March 2012, subject to the usual regulatory approval being met.
Mr Rashnikov is confident the group will go on to become one of the biggest players in the Australian iron ore market and the board of directors at Flinders has unanimously backed the move.
Posted by David Gleck
Source: MMK press release, November 25th