China’s Laiwu Iron & Steel Group has denied the news that the company has dropped out the sale of a 38 percent stake to ArcelorMittal.

The media released earlier that ArcelorMittal said Laiwu Steel has other priorities and may not proceed the agreement. However, ArcelorMittal official cannot be reached to comment on this statement.

Laiwu’s official said the whole stake transfer project is still waiting for approval of Chinese authorities, and Laiwu Steel has not notified ArcelorMittal about any withdraw.

ArcelorMittal had planned to buy a 38-percent stake of Laiwu Steel in February 2006.