A Chinese steel consortium has announced a $1.95bn purchase of a stake in a Brazilian miner of niobium, underscoring the country’s growing interest in Latin American resources.
The consortium, which includes Citic Group as well as steelmakers Anshan, Shougang, Baosteel, and Taiyuan Iron & Steel, will purchase a 15 per cent stake in Companhia Brasileira de Metalurgia e Mineração (CBMM), a privately owned Brazilian mining company.
The deal highlights how China’s appetite for resources has been a driver for global mergers and acquisitions, even against the backdrop of wavering commodities prices this year. China is the world’s biggest consumer and producer of steel, a key ingredient in everyday items such as cars and buildings, and Chinese demand has kept iron ore prices close to historic highs this year.