Chinese firms take 15-pct stake in niobium producer CBMM

Thu Sep 1, 2011

SHANGHAI, Sept 1 (Reuters) - China's Citic Group has teamed up with stainless steel producers Taiyuan Iron and Steel and Baosteel to acquire a 15-percent stake in a Brazilian niobium producer for $1.95 billion, the official Xinhua news agency reported on Thursday.

Companhia Brasileira de Metalurgia e Mineracao (CBMM) is the world's largest niobium producer. The metal is mainly used to produce superalloys for high-tech sectors as well as to make stainless steel.

The deal will be completed on Thursday, Xinhua reported, without citing sources.

A consortium of four Japanese companies -- JFE Holdings , Nippon Steel , Sojitz Corp and government-funded Japan Oil, Gas & Metals National Corp -- as well as South Korea's National Pension Service and Posco , bought a combined 15 percent stake in CBMM for about $1.8 billion in March.