(Agencies)
Updated: 2007-11-23 15:44

ArcelorMittal, the world's largest steel producer, has raised its stake in China Oriental to more than 73 percent, becoming the first foreign company to take control of a Chinese steelmaker.

Related readings: Arcelor Mittal pays $647m for China Oriental stake Laiwu extends Arcelor Mittal deal deadline Arcelor Mittal expects nod for Laiwu stake soon China's steel industry may see inflexion next year

According to a Hong Kong stock exchange filing, the Luxembourg-based company has increased its holding in the Chinese company from about 28 percent, but no formal statement regarding the stake purchase was issued.

ArcelorMittal paid US$647 million for the 28 percent shareholding earlier this month. On Thursday, the Financial Times said the 73 percent stake could be valued at about US$1.7 billion.

The deal in China Oriental reflects ArcelorMittal's ambition to take a foothold in the world's biggest producer and consumer of steel.

ArcelorMittal has been thwarted so far in efforts to buy a 38 percent stake in Laiwu Steel, China's ninth largest producer.

China Oriental, which operates a steel mill with output of 4 million tons a year, would not comment on the exchange filing.

Last year it had sales of US$1.31 billion and operating earnings of US$225 million.