SYDNEY May 29 Chinese steel giant Baosteel
and Australia's Aurizon Holdings Ltd said
on Thursday they have cleared a key regulatory hurdle to proceed
with a $1 billion takeover of Australian explorer Aquila
The approval from the Australian Foreign Investment Review
Board (FIRB) puts Baosteel and rail company Aurizon one step
closer to securing their own iron ore, which means relying less
on top suppliers Vale, Rio Tinto and BHP
In a joint statement, Baosteel and Aurizon said they each
received letters from the FIRB saying it had no objection to the
deal. There are no Chinese regulatory hurdles for the sale, the
The FIRB clearance meant there were fewer conditions
associated with the offer, which now only needs 50 percent
shareholder approval to proceed, they added.
Baosteel and Aurizon said they would soon send Aquila
shareholders a bidders statement.
Aquila shares were trading steady at A$3.51 at 05.14 GMT, a
premium to the takeover offer of A$3.40 per share. Aurizon
shares were down 4 cents at A$4.90.
(Reporting By Byron Kaye; Editing by Miral Fahmy)