By staff reporters Han Wei, Yan Jiangning

From Caijing Online

Fortescue Metals Group Ltd (FMG) said it expects Australian regulators to soon approve a proposed A$558 million investment in the company by China’s Hunan Valin Steel Co Ltd.

FMG said Hunan Valin submitted the proposed transaction, for a 16.5 percent stake in the Australian miner, to the Australian Foreign Investment Review Board two weeks ago. 

Russell Scrimshaw, FMG’s executive director, told Caijing on March 4 that his company “is confident that approval will come soon.” 

A source close to the deal expects the transaction to be completed by late March.

Shares in the Australian miner have been suspended from trading since late Feb 20, last trading at A$2.83.

The Hunan Valin deal values Fortescue’s shares at A$2.48, a discounted entry point for the Chinese steelmaker, which is seeking to secure its future supply of iron ore.