World’s largest integrated metals and mining company ArcelorMittal has finally agreed to acquire London Mining South America (London Mining Brasil) for $810 million.

Under the proposed deal, ArcelorMittal will acquire 100% of the issued share capital of Brazilian iron ore miner, London Mining South America Ltd from Oslo Stock Exchange-listed London Mining Plc for about $764 million.

Behind this, the transaction also includes the assignment of inter-group loans from London Mining of about $46 million, taking the total consideration payable to London Mining to $810 million.

London Mining Brasil is currently in the process of expanding its production of iron-ore concentrate and lump ore from 1.4 Mtpa to 3.2 Mtpa in 2009. The iron ore miner focuses on exploration, development and production in the Brazilian state of Minas Gerais.