Bloomberg reported that Noble Group Ltd the Hong Kong based commodity trader offered AUD 90 million for the shares in Territory Resources Ltd it doesn’t own, outbidding a deal agreed to with Exxaro Resources Ltd.

Perth based Territory said in a filing Noble, Territory largest investor with a 32% stake offered 50 cents for each share. That’s 8.7% more than Exxaro offer and a 6.4% premium over yesterday’s close.

Buying Territory would give Noble an iron ore operation in Australia Northern Territory with production capacity of 2 million metric tons. Companies are adding steel raw material assets as demand in China and India grows.

Pretoria based spokesman Mr Hilton Atkinson said Exxaro is looking at all options after Noble bid. In an earlier statement, Exxaro urged Territory shareholders not to take any action until it reviews its position. Exxaro said the Noble bid will remain open until July 21 unless extended.

Exxaro which has a stake in Kumba Iron Ore Ltd Sishen mine in South Africa has been looking since at least last year for iron ore opportunities betting demand for the material will increase. Bank of America Merrill Lynch said June 7 market supply of the material will disappoint expectations in the near and mid-term, pushing up prices.

(Sourced from Bloomberg)