Baosteel set to take control of Aquila

Baosteel Group Corp, the owner of China's biggest publicly traded steelmaker, will take control of Australia's Aquila Resources Ltd after the third-largest shareholder accepted its bid.

Baosteel and partner Aurizon Holdings Ltd "entered into an agreement with Aquila to facilitate the orderly transition of control and management", the bidders said in a statement on Thursday. Baosteel's A $3.40 per-share cash offer values Aquila at about A $1.4 billion ($1.3 billion).

The deal will give Baosteel a share of the A $7.4 billion West Pilbara iron ore mine, port and rail project in Western Australia. It is seeking to accelerate development to meet steel demand in China, the world's biggest market.