SEOUL – A consortium which includes South Korean steelmaker POSCO <005490.KS> has agreed to buy a 15 percent stake in a Canadian iron ore mine operator controlled by ArcelorMittal for $1.1 billion, a source familiar with the deal said on Wednesday.
A POSCO spokeswoman confirmed a consortium involving POSCO signed a stock purchase agreement to acquire a stake in the iron ore mine operator, but declined to elaborate on details.
South Korean wire service Yonhap Infomax reported Wednesday the consortium includes China Steel <2002.TW>, which will share a $540 million payment with POSCO. The remaining $560 million is expected to be paid by financial investors including the National Pension Service, the report added.
A source had previously told Reuters that POSCO was seeking to buy the stake with South Korea's National Pension Service and other investors.
(Reporting by Joyce Lee; Editing by Michael Perry)