Chinese-linked companies seek permission for Fortescue stake

[SYDNEY] Chinese-linked companies have applied to Australian regulators for permission to invest in Fortescue Metals Group, the Australian Financial Review reported on Tuesday, citing unnamed sources.

Fortescue held talks with Chinese steel producer Baosteel and CITIC about a recapitalisation of the Australian miner's balance sheet, the Australian newspaper said.

Following the talks, one or both of those companies have applied to the Foreign Investment Review Board for permission to proceed with an investment.

The Australian Financial Review said it was unclear whether the applications to the Australian regulator were made by Baosteel or by CITIC.

Discussions concern only buying a stake in Fortescue or increasing already-held ownership in the Australian miner and not a full takeover, the Australian newspaper said.

REUTERS