Billionaire Andrew Forrest has launched an off-market bid to acquire Red Hawk, the owner of a key iron ore deposit near Fortescue’s existing Pilbara mines, as part of a strategy to secure longer-term growth on home soil.
The board of Red Hawk has agreed to sell its Blacksmith iron ore deposit, located 30 kilometres west of Fortescue’s Solomon operations in the Pilbara, in a deal valued at up to $254 million. Fortescue requires the support of the target’s shareholders to secure the deal.
Mark Wembridge covers resource companies for The Australian Financial Review, based in Perth. He formerly worked for the Financial Times in London and Hong Kong. Connect with Mark on Twitter. Email Mark at mark.wembridge@nine.com.au
