China Oriental Group announced yesterday that ArcelorMittal did not gain the antimonopoly approval from relevant departments and the agreement they signed earlier was not effective any more.
The company said yesterday that ArcelorMittal will hold 73.13% shares in China Oriental within 6 months till May 9 this year if they gained antimonopoly approval from regulatory departments from China, according to the agreement two parties signed on Dec.13, 2007. But till the deadline of May 9, they gained no approval. People of public relation of China Oriental said stock right transfer was not effective any more. That means ArcelorMittal could not gain holding rights from China Oriental.
But ArcelorMittal does not give up hope in holding shares from China Oriental they are still expecting the approval although the stock right transfer was invalid according the agreement.
As for the failure to acquire China Oriental, analyst of steel industry said the country stipulated that foreign investment in Chinese steel industry will not allowed holding stocks in principle. It is difficult for ArcelorMittal to gain approval from Ministry of Commerce of the People`s Republic of China. ■
ArcelorMittal failed to acquire China Oriental
China Oriental Group announced yesterday that ArcelorMittal did not gain the antimonopoly approval from relevant departments and the agreement they signed earlier was not effective any more.
The company said yesterday that ArcelorMittal will hold 73.13% shares in China Oriental within 6 months till May 9 this year if they gained antimonopoly approval from regulatory departments from China, according to the agreement two parties signed on Dec.13, 2007. But till the deadline of May 9, they gained no approval. People of public relation of China Oriental said stock right transfer was not effective any more. That means ArcelorMittal could not gain holding rights from China Oriental.
But ArcelorMittal does not give up hope in holding shares from China Oriental they are still expecting the approval although the stock right transfer was invalid according the agreement.
As for the failure to acquire China Oriental, analyst of steel industry said the country stipulated that foreign investment in Chinese steel industry will not allowed holding stocks in principle. It is difficult for ArcelorMittal to gain approval from Ministry of Commerce of the People`s Republic of China. ■