A few reports I have read suggest China will not look to take over SDL.
Just a reminder of what has been published last year. China switches track in hunt for West Africa iron ore.
In Part.
Chinese mining companies moving away from full takeovers.
Chinese infrastructure firms now main investors into region.
Executives and Analysts say China is tying up supply of the steel-making commodity in the region, as for cast- but through sales deals and associated infrastructure rather than acquisitions.
The type of Chinese firms looking to invest in West Africa iron ore is changing, with much of the interest coming from railway and construction firms - whose role is critical in a region with little or no infrastructure - and import companies, rather than heavyweight mining state- owned enterprises (SOEs).
The big SOEs entered the overseas market earlier. None of them have been successful. They have been left with a bad taste; Guocheng Pan, chief executive at iron ore miner China Hanking Holdings,told Reuters.
Those (West African) projects will go ahead, its just a matter of time; he added.
Chinese firms are still at the table to ease their dependence on Vale, Rio Tinto, and BHP Billiton, but are not interested in taking over entire companies as in the past.
"From what we have seen the Chinese would very much like collaboration and to work in partnership, Haresh Kanabar, chairman of IMIC, which is buying Cameroon-focused miner Afferro, told Reuters.
Regards Westcott.
SDL Price at posting:
10.0¢ Sentiment: None Disclosure: Held
