Norton Rose acts for ArcelorMittal in
$1.1 billion iron ore joint venture
January 8, 2013
International legal practice Norton Rose is advising ArcelorMittal in its agreement to sell a 15% interest in its wholly-owned subsidiary, ArcelorMittal Mines Canada, for $1.1 billion to a consortium led by South Korea’s POSCO and Taiwan’s China Steel Corporation.
The joint venture partnership is in ArcelorMittal’s flagship iron ore mine located in the Labrador Trough of Quebec, together with associated rail and port infrastructure. As part of the deal, POSCO and China Steel Corporation will enter into long-term iron ore supply agreements with the joint venture which will continue to be controlled by ArcelorMittal with an 85% joint venture interest.
Completion of the sale and the formation of the joint venture is subject to a number of conditions, including approval of the Taiwanese government. The sale is expected to close in two tranches, the first in mid-March and second by not later than June 2013.
Dawn Whittaker, partner and Canadian leader of Norton Rose’s Canadian mining and commodities practice, said:
“This agreement shows the continued interest in the Canadian mining sector, particularly from Asia. ArcelorMittal’s Quebec mining operations are a tremendous resource and produce about 40% of Canada’s iron ore output. The joint venture is a winning, long-term strategy for ArcelorMittal and the consortium.”
Norton Rose Canada LLP and Shearman & Sterling LLP acted as co-counsel to ArcelorMittal on the transaction.
Two Norton Rose teams in Canada acted on the deal. A team led by Dawn Whittaker and including Eric Reither, Robert Eberschlag, Kevin McPhee, Sara Josselyn, Hoori Chitilian, Trevor Zeyl, Janet Howard and Jeremy Grushcow (M&A and Mining), Barry Segal (Tax), Denis Gascon and Kevin Ackhurst (Investment Canada) is representing ArcelorMittal in connection with the M&A, joint venture and off-take transactions.
A team led by Robert Borduas and including Marie-Claude Mailloux, Peter Riddell, Catherine de Laboursodière and Vincent Filiatrault (Corporate, M&A), Mario Caron and Miguel Manzano (Real Property, Mining), Derek Chiasson (Tax), Richard Desgagnes (Infrastructure), Jean Piette (Environmental), Francois Cote (Employment and Labour), Martin Rochette (Pension and Benefits) and Pierre-Christian Labeau (Aboriginal), assisted ArcelorMittal Mines Canada with the joint venture transaction and a reorganization of its Quebec iron ore and infrastructure operations.
On June 1, 2013 Norton Rose will join forces with leading U.S. law firm Fulbright & Jaworski to form Norton Rose Fulbright. With 3,800 lawyers, Norton Rose Fulbright will be one of the largest global legal practices, with significant depth of expertise in the world’s leading business and financial centres.
For further information please contact:
Peter Zvanitajs, senior public relations advisor (English press)
Tel: +1 416 216 1871; Mob: +1 416 553 5789
Johanna Pardo, senior public relations advisor (Québec region/French press)
Tel: +1 514 847 4921; Mob: +1 514 576 2399
Rebecca Geddes, senior public relations advisor (English press)
Tel: +1 403 267 8177; Mob: +1 403 650 9240
Notes for editors:
Norton Rose is a leading international legal practice. We offer a full business law service to many of the world’s pre-eminent financial institutions and corporations from offices in Europe, Asia, Australia, Canada, Africa, the Middle East, Latin America and Central Asia. Knowing how our clients’ businesses work and understanding what drives their industries is fundamental to us.
Our lawyers share industry knowledge and sector expertise across borders, enabling us to support our clients anywhere in the world. We are strong in financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and pharmaceuticals and life sciences.
We have more than 2900 lawyers operating from offices in Abu Dhabi, Almaty, Amsterdam, Athens, Bahrain, Bangkok, Beijing, Bogotá, Brisbane, Brussels, Calgary, Canberra, Cape Town, Caracas, Casablanca, Dar es Salaam, Dubai, Durban, Frankfurt, Hamburg, Hong Kong, Johannesburg, London, Melbourne, Milan, Montréal, Moscow, Munich, Ottawa, Paris, Perth, Piraeus, Prague, Québec, Rome, Shanghai, Singapore, Sydney, Tokyo, Toronto and Warsaw; and our associate office in Jakarta.
From 1 June, 2013 we will join forces with leading U.S. law firm Fulbright & Jaworski L.L.P. to create Norton Rose Fulbright. We will also have offices in Austin, Dallas, Denver, Houston, Los Angeles, Minneapolis, New York, Pittsburgh-Southpointe, Riyadh, San Antonio, St Louis and Washington, D.C. With 3,800 lawyers, Norton Rose Fulbright will be one of the largest global legal practices, with significant depth of expertise in the world’s leading business and financial centres.
Norton Rose is the business name for the international legal practice that comprises Norton Rose LLP, Norton Rose Australia, Norton Rose Canada LLP and Norton Rose South Africa (incorporated as Deneys Reitz Inc) and their respective affiliates.