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DLA acts on major investment into Aus
DLA Piper has advised on a $US1.5 billion investment into Australia by Taiwan’s largest private company.
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Firms: DLA Piper (Fortescue Metals Group); ClarkeKann Lawyers (Formosa Plastics Group)
Area: Corporate/M&A
Value: $US1.5 billion
Key players: DLA Piper's team included partners Jim Holding (pictured) and Stephen Webb, senior associates Lyndon Masters and Kate Papailiou, and solicitor Emily Dux
Deal significance: The FMG Iron Bridge Project encompasses the world-class North Star and Glacier Valley iron ore deposits, located 100km south of Port Headland in Western Australia. The Project is underpinned by a combined iron ore resource of 5.2 billion tonnes.
Under the arrangements, Formosa will fund construction of stage one of the project, which will commence on completion of the transaction. The company will also participate in stage two and will agree to purchase up to three million tonnes per annum of iron ore at market prices to supply its integrated steel mill at Ha Tinh in Vietnam, when commissioned.
DLA Piper partner Jim Holding commented: "We were proud to assist FMG with this significant transaction, which clearly signals that the Australian resources market is still appealing to Asian investors."
Listed in the S&P/ASX30 share index, FMG is the world's fourth largest iron ore producer. Formosa is Taiwan's largest private company.
