ArcelorMittal (NYSE:MT) has agreed to sell 15% of its Labrador Trough iron ore mining and infrastructure assets in Canada, the company announced in an official press release. The price is $1.1 billion in cash and the buyer is a consortium of China's POSCO (NYSE:PKX) and Taiwan's China Steel Corp., as well as "certain financial investors" that ArcelorMittal did not name in its press release.
As part of the deal, POSCO and China steel are to enter into long-term iron ore supply agreements with the mine. ArcelorMittal said it expects the sale, which is subject to approval from regulators, to close in a pair of installments in the first and second quarters of this year.
Eric Volkman has no positions in the stocks mentioned above. The Motley Fool owns shares of ArcelorMittal. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.