Trading house Sumitomo Corp. said Thursday it will acquire a 30 percent stake in an iron ore mining subsidiary of major Brazilian steelmaker Usinas Siderurgicas de Minas Gerais S.A. for up to $1.93 billion.
The investment in Mineracao Usiminas S.A. would enable Sumitomo to secure 9 million tons of iron ore a year, equivalent to nearly 10 percent of Japan's overall iron ore imports, and the trading house is expected to provide it to Nippon Steel Corp. and other domestic steelmakers, company officials said.
Sumitomo and the Brazil steelmaker, known as Usiminas, plan to ink accords on the deal by the end of August.