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After a spectacular takeover of Corus, Tata Steel has made a hostile offer to acquire Brazilian iron ore miner AVG, which is owned by global mineral giant MMX.
The Steel Business Briefing quoted a MMX president Eike Batista as saying that the domestic steel giant has made the offer.
"Eike, however, did not reveal the value offered by Tata, but said a deal could be made if Tata guarantees it will build a carmaker on the outskirts of Acu Port, the complex MMX is building on the coast of Rio de Janeiro," the daily said.
If this happened then MMX could sell as much as 50 per cent stake in AVG to the domestic steel giant.
However, when contacted, Tata Steel refused to comment on the development.
AVG was purchased by MMX last year for $224 million. Its current capacity is around 2.3 million tonnes per year.