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.

http://www.nortonrose.com/news/74016/norton-rose-acts-for-arcelormittal…