TEHRAN, Feb 18: Steel giant Mittal has expressed an interest in buying state-run Iranian producer Foulad-e-Mobarakeh for $5-6 billion, but the bid is highly unlikely to succeed, the Iranian firm said on Saturday.

Foulad-e-Mobarakeh, which has annual steel production of 4.2 million tons, said Mittal made the approach two months ago, but the state was unlikely to surrender control of the firm while it was cranking up output.

“It goes back to two months ago and the amount discussed was between $5-6 billion,” Foulad-e-Mobarakeh spokesman Sadeq Abtahi said. “I do not think it would be a practical proposal ... I do not think the government has any reason to sell as we are doing very well.”

Abtahi said the company was waiting for the government to approve an expansion plan that would push output up to 7 million tonnes a year. The timeframe for the output rise was unclear.—Reuters