Norton Rose Fulbright advises Ansteel Group on $39m acquisition of Gindalbie Metals Limited

Press release - Business March 19, 2019

Global law firm Norton Rose Fulbright has advised Ansteel Group, a Chinese state-owned steel producer, on its $39 million acquisition of independent Australian resources company, Gindalbie Metals Limited.

Ansteel Group, which has a production capacity of 39 million tons of raw steel and is a large producer of other minerals and ores like vanadium and titanium, supplies products for a wide range of industries including shipping, railway, machinery and aeronautics. 

The cross-border deal requires the Perth-based Gindalbie Metals Limited to simultaneously demerge its subsidiary Coda Minerals Limited, and will result in the Ansteel Group acquiring 100% of Gindalbie Metals Limited and a stake in Coda Minerals Limited.

The Ansteel Group and Gindalbie Metals Limited have previously engaged in a joint venture, the Karara Iron Ore Project, a large-scale magnetite concentrate mining operation for export to Asian markets. Norton Rose Fulbright also previously advised on all aspects of the establishment, financing, and operation of the Karara project.

A Norton Rose Fulbright team advised Ansteel Group on the negotiation of the acquisition, due diligence and Foreign Investment Review Board (FIRB) application, as well as the demerger transaction documents.

Norton Rose Fulbright partner James Stewart commented:

“We are delighted to have brought a team of lawyers with cross-border M&A experience in Asia-Pacific to advise Ansteel Group on this transaction. The deal involved many moving parts, including a simultaneous merger and demerger across Australia, China and Hong Kong, a review from FIRB, and an important cross-cultural communication facilitated by our fluent mandarin-speakers.” 

The team was led by corporate M&A partners James Stewart and Andrew Fisken and supported by Roger Hawkins, Natasha Dhillon-Penner, Lillian Chau, Sahar Rostabeik and Carol Sin.