Australia blocks Shougang iron deal

A unit of Chinese steelmaker Shougang found its attempt to purchase 19.73% of Australian miner Mount Gibson Iron blocked by Australian regulators, the South China Morning Post reported. Australia’s Takeover Panel said the acquisition attempt by Shougang Concord International Enterprises revealed its attempts to gain control of Mount Gibson together with another Shougang subsidiary, a move which violated Australia’s corporate code. The decision to block the acquisitions comes amidst ongoing tension between China and Australia over iron ore exports. Industry arms of the Chinese government have blocked spot sales of iron ore in China by BHP Billiton and Rio Tinto Group, a move which may have cost Australia hundreds of millions of dollars in export profits.