TAIYUAN -- Three Chinese firms have jointly acquired 15 percent of stake in the world's largest supplier of niobium, Brazil's CBMM.

The Taiyuan Iron and Steel (Group) Co Ltd headquartered in northern Shanxi province, CITIC Group and the Shanghai-based Baoshan Iron and Steel Group (Baosteel) have jointly set up a new firm -- China Niobium Investment Holding Co -- through which they acquired the CMBB stake for $1.95 billion.

The business transaction will be completed on Thursday, said sources with the Taiyuan Iron and Steel (Group) Co Ltd.

CBMM's niobium output accounts for 85 percent of the world's total. The rare metal element is important for making super alloys.