China’s flagship steel mill Baosteel Group, together with Australia’s largest rail freight operator Aurizon Holdings (AZJ.ASX), announced to make a joint takeover offer to acquire Aquila Resources (AQA.ASX), Bloomberg reported. The potential offer values the equity in Aquila at approximately US1.3 billion. Buying Aquila would give Baosteel, which has held a stake in Aquila since 2009, and Aurizon 50% ownership in the US$6.86 billion West Pilbara Iron Ore project. Aquila, which is also building a US$1.3 billion coal mine in Australia, last year slowed development of its iron ore project after prices fell.
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