Mining and Heavy Industries

Two bidders left in Arrium sale

Arrium operates in the mining and mining consumables manufacturing sectors.

Both remaining firms bidding for beleaguered mining and metals business Arrium want to acquire the company in full, according to multiple reports.

Several sources have indicated administrator KordaMentha is targeting a June 30 date to finalise the sale.

In a note to Arrium staff, the administrator reportedly revealed a pair of bidders remained in the running to buy the business, but it could not be revealed who they were.

“In conjunction with Morgan Stanley, the administrators have shortlisted two bidders to progress to the next stage of the sale process,” the administrator was quoted as saying by Fairfax.

“We can confirm that both bidders are seeking to purchase the Arrium Australia business in one line.

“The outcome of the next stage of the sale process will be to receive unconditional bids that can be accepted and completed swiftly.”

AFR believes the two bidders are South Korea’s Posco, and a partnership of UK commodities trader Liberty House and SIMEC.

Brookfield was said to be in the running earlier in the process, but reportedly dropped out of talks in February.

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