Jiangsu Shagang to buy 45% of Grange

Steelmaker Jiangsu Shagang Group agreed to buy a 45% stake in Australian iron ore producer Grange Resources, Bloomberg reported. Grange will combine with Australian Bulk Minerals, a Shagang-controlled operator of an iron-ore mine in Tasmania, to create a new US$836 million company. The deal is expected to accelerate development of Western Australia’s Southdown iron ore project and boost Grange’s funding capacity. Grange will issue 380 million new shares to the holding companies that own Australian Bulk Minerals, including Shagang. Grange shareholders will own 26.1% of the new company, with the remainder held by Australian Bulk Minerals’ owners.