The world’s largest steel producer ArcelorMittal has expressed interest in buying the troubled US-based coal firm Massey Energy Co, says a media report.
Quoting people familiar with the matter, the Wall Street Journal said “steel giant ArcelorMittal SA is among the companies that have expressed interest in buying Massey Energy Co if the coal miner decides to sell itself”. Luxembourg-based Arcelor’s preliminary exploration of a possible deal began a few months ago and is in the early stages, the report added. Last week, Coal India Chairman Partha Bhattacharyya had said the company is in talks to acquire mines from two US companies, Peabody Energy Corp and Massey Energy Co.
Quoting a person familiar with the situation, the daily said, “the talks have focused on Coal India’s possible purchase of a Massey mine but have yet to turn serious.”
David Khani, an analyst at FBR Capital told the WSJ that “steel companies with a presence in India are among the most eager to secure such assets because India’s coal generally is of poorer metallurgical quality than the coal found in China, the US or Australia.”
Indian steel companies are “scouring the world for supply” Khani told WSJ.
