An Arab-Brazilian consortium has completed the purchase of the Bahrain-based Gulf Industrial Investment Company (GIIC). Gulf papers reported that the Kuwait Petroleum Company (KPC) had sold its shares in the iron ore pellet producing GIIC to the Gulf Investment Company (GIC) and Brazil’s Companhia Vale do Rio Doce (CVRD) for $183 million, leaving the company in Bahrain.
The move to maintain the company in Bahrain is being tabbed as a significant move for regional steel producers, but more importantly “For Bahrain, it is a strong vote of confidence in the country,” Ibrahim Dadboub, CEO of the National Bank of Kuwait, told Khaleej Times.
GIC is owned by a group of regional financial institutions, having equal representation in all six member states of the AGCC. CVRD, a world leader in the production of iron ore and pellets, has a current market capitalization of $ 9 billion, reported Khaleej Times. KPC has the capacity to produce four million tons of iron ore pellets per year. — (Albawaba-MEBG)