BC Iron now owns more than 90 per cent of Kerry Stokes' Iron Ore Holdings, giving it the right to compulsorily acquire the remaining shares

The acquisition of the billionaire's iron ore vehicle is almost complete after BC Iron last night increased its stake in Iron Ore Holdings beyond 90 per cent.

Launched almost two months ago, the $250 million deal had to survive a precipitous 19 per cent slide in the iron ore price and two time extensions, but will now safely proceed toward a full takeover with the outstanding shares to be compulsorily acquired.

It crossed the line when Iron Ore's third biggest shareholder, Sumisho Iron, decided to turn its 4 per cent stake over to BC Iron.

The merger will see Mr Stokes own 19 per cent of the combined entity once the transaction is complete,

BC Iron shares were worth $3.31 prior to the deal being announced, but several institutional investors sold down their stakes after the takeover was announced, with some concerned the deal could interrupt BC Iron's generous dividend policy.

BC Iron has also been viewed as a company that will be exposed to declining payments for its product as it typically exports iron ore that is shy of the top quality stuff exported by Rio Tinto and BHP Billiton.

The share price closed at $1.48 on Tuesday, but analysts believe the company has a strong financial base, and can easily withstand a full year of iron ore prices at current levels at least.

The combined company will retain BC Iron's relatively short-life 75 per cent stake in a 6 million tonne per year export operation in the Pilbara, plus the longer-life West Pilbara growth assets that Iron Ore Holdings has been developing.

Iron Ore Holdings also has a mine gate sale business, which is expected to bring in first revenues in coming months.

BC Iron managing director Morgan Ball said he was pleased to see shareholders accept the deal, and he welcomed the Iron Ore Holdings investors into the company.

"We are looking forward to completing the transaction and advancing Iron Ore Holdings' attractive, long-life assets," he said.