Chinese Steel giants merger to create world's second largest Steel firm

CHINA September 22 2016 5:45 PM     

BEIJING (Scrap Register): China’s  Baosteel Group is on the move to become the world's second largest steel maker  by fullt take over Wuhan Steel Group, as Beijing aims to increase the  concentration level of the scattered industry. The new entity will be named  China Baowu Steel Group.

Baoshan Iron & Steel, Baosteel  Group’s main listed unit, will issue new shares to shareholders of Wuhan Iron  & Steel to absorb the company, a plan that is subject to government  approval.

The government wants 60 per cent of national output to come  from the top 10 steel makers by 2025, up from less than 40 per cent now as well  as to build 3 to 5 giant steel mills.

The creation of Baowu Steel will  cut to 103 the number of companies run directly by the central government, down  from 111 at the start of the year, and the figure could eventually reach  40.

The creation of Baowu Steel will decrease the number of companies run  directly by the central government to 103 from 111 at the start of the year, and  the figure is estimated to reach 40.