SYDNEY/MELBOURNE, May 29 (Reuters) - The Australian government cleared on Thursday a $1 billion bid by Chinese state-owned Baosteel Resources for iron ore miner Aquila Resources Ltd, removing the only regulatory hurdle to the deal.
The approval from the Australia Foreign Investment Review Board puts Baosteel and its bidding partner, rail company Aurizon Holdings Ltd, a step closer to taking over Aquila, which would give them stakes in a $7 billion iron ore mine, rail and port project and a coal mine.
The biggest obstacle to the deal, which values Aquila at A$1.42 billion, is support from its founder, Tony Poli, who holds a 29 percent stake. For the takeover to succeed, the suitors need the approval of at least half of Aquila's share base.
Poli has yet to make any public comments on the bid.
AQA Price at posting:
$3.53 Sentiment: Hold Disclosure: Held
