wuhan-iron-seeks-stake-in-brazils-mmx

Wuhan Iron seeks stake in Brazil's MMX

The Chinese steel producer will spend $400 million to acquire a minority interest in Brazilian mining company MMX and its subsidiary.

Chinese state-owned enterprise Wuhan Iron and Steel Corporation Wisco has tabled a non-binding offer to Brazilian mining and metals company MMX. The offer follows a stock exchange filing by MMX in May, in which the Brazilian firm flagged that it was in discussion with the Chinese SOE for a business combination.

Wisco will subscribe to new shares in MMX, representing a 9.09% equity ownership in the company, for an outlay of $120 million. The agreed price values MMX at an equity value of $1.3 billion. Wisco will simultaneously acquire a 23% equity interest in an MMX subsidiary, MMX Sudeste, also by subscribing to new shares at a cost of $280 million. This...

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