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CHINESE firm Sinosteel Corporation has launched a $1.2 billion takeover bid for Western Australian iron ore miner Midwest Corporation.

Sinosteel is offering $5.60 per Midwest share.

Sinosteel said it currently has a 19.9 per cent stake in MidWest.

Sinosteel said its offer of $5.60 a share represented a 34.9 per cent premium to the last traded price of Midwest shares of $4.15.

The offer is subject to 50.1 per cent minimum acceptance.

Sinosteel in December made an incomplete and non-binding $1.2 billion bid for Midwest at $5.60 a share.

Sinosteel says it already has Foreign Investment Review Board to acquire Midwest, and so needs no further regulatory approval from Australia.

It is the first hostile Chinese takeover play for an Australian company.

Another Perth-based miner, Murchison Metals, last month scrapped a $900 million takeover offer for Midwest after failing to receive enough acceptances.

I think the MCC deal is a done deal after the midwest one. :) good for us the holders:D