Australia-based miner Fortescue Metals and Chinese steel producer Baosteel will merge their Western Australian magnetite assets into Hong-Kong-based company FMG Iron Bridge, as announced by Fortescue at the Australian Securities Exchange (ASX).
Fortescue will own a 88 percent stake in the new company consolidating the interests of both companies in the Glacier Valley and Northstar mining leases, while Baosteel will have 12 percent. Northstar is 100 percent owned by Fortescue, while Glacier Valley is 65 percent owned by Fortescue, with the remaining 35 percent belonging to Baosteel.
The transaction is subject to approval from Australian Foreign Investment Review Board (FIRB) and Chinese State-Owned Assets Supervision and Administration Commission (SASAC).