Hanlong Mining approved for Australian takeover

Chinese regulators approved Hanlong Mining’s US$1.3 billion bid to takeover Australian iron ore developer Sundance Resources (SDL.ASX) in what appears to be a show of confidence in a weakening sector, Reuters reported. Hanlong, which already has a 17% stake in Sundance, offered to buy the company in order to gain full ownership of the US$4.7 billion Mbalam iron ore project in the region bordering the republics of Congo and Cameroon. The purchase could limit China’s dependence on Australia and Brazil for iron ore supplies. With the approval of the National Development and Reform Commission secured, Hanlong now only needs financing from China Development Bank to complete the deal. In view of a 40% dip in Sundance shares from the previously agreed offer price of AUD0.57 (US$0.60), Hanlong is looking to renegotiate its original offer which valued the Sundance at US$1.74 billion, a Hanlong official said.