TWO major shareholders in Australian iron ore miner Midwest Corp have accepted takeover offers from Sinosteel Corp, giving the Chinese steel maker more than an 82 percent stake in the company.
Sinosteel said yesterday its offer had been accepted by Murchison Metals Ltd, which holds 9 percent of Midwest shares, and Armadale Offshore Inc with 12 percent.
Sinosteel wants access to Midwest's Australian iron ore assets to serve China's booming steel industry, which is dependent on global mining giants Rio Tinto Ltd and BHP Billiton Ltd. China's mills have had to agree to price rises of up to 96 percent for iron ore from the two.
Sinosteel gained a controlling 50.97 percent stake in Midwest in July but is still pursuing full ownership.