ArcelorMittal, Angang in informal talks

ArcelorMittal has held informal discussions with Angang Steel about some form of cooperation in China, the Financial Times reported. Luxembourg-based ArcelorMittal is the world’s largest steel producer. Angang Steel is China’s second-largest steel company. ArcelorMittal CEO Lakshmi Mittal proposed buying a stake of up to 25% in Angang to the firm’s chairman Zhang Xiaogang in a private meeting over two months ago. While Zhang declined the offer, he told the paper in an interview that he was open to a much smaller investment along the lines of 1-2%. He also said Angang was open to cooperating with ArcelorMittal in new steelmaking or mining projects. Zhang said Angang could gain international experience by working with ArcelorMittal, perhaps by both companies taking an equity stake in a stand-alone production venture.