Paris, Jan 14 (Agencies): ArcelorMittal and Nunavut Iron Ore agreed on Friday a joint offer for Canadian mining company Baffinland, ending a bidding war, ArcelorMittal said in a statement.

The offer by ArcelorMittal, the world's largest steel company, and Nunavut was worth CanUSD 1.50 (1.10 euros/USD 1.50) per share.

This was higher than rival bids of CanUSD 1.40 per share that had been on the table.

ArcelorMittal has already locked up a quarter of Baffinland's shares while Nunavut has 10.5 per cent.

Baffinland specialises in the development of iron ore sites along the Mary River in northern Canada.

The global steel giant ArcelorMittal said it and Nunavut Iron Ore Acquisition, an entity backed by the Houston-based private equity firm Energy and Minerals Group, would make a joint offer of 1.50 Canadian dollars a share in cash for Baffinland.

The offer, the companies said, represents a premium of 168 percent to where Baffinland was trading before Nunavut made an unsolicited offer of 80 Canadian cents a share in September.

ArcelorMittal had been offering 1.40 Canadian dollars a share, while Nunavut Iron had pitched a 1.45 Canadian dollars a share offer for nearly 50 percent of the
The offer expires Jan 24. If it is successful, ArcelorMittal will own 70 percent of Baffinland and Nunavut Iron will own 30 percent.

Baffinland has a market value of just $563 million, but it offers a tantalizing prize. It has an iron ore project on Baffin Island in Canada’s Arctic Circle that is said to be among richest undeveloped deposits in the world. Iron ore has been in high demand as nations like China ramp up their production of steel.

The Baffin Island deposit could meet all of Europe’s iron ore needs for years, according to Reuters.

“Together with Nunavut Iron, we are providing a more attractive offer to Baffinland shareholders than either of us were prepared to provide on our own,” said Peter Kukielski, head of mining at ArcelorMittal.