China to Promote M&A in Auto, Cement, Steel, Machinery, Aluminum

BEIJING, Sept. 7 -- China will promote consolidation of companies in the automobile, cement, steel, machinery, rare earth and aluminum industries via mergers and acquisitions, the State Council said in a statement on its website today.

The government will remove rules that limit cross-regional mergers and acquisitions, according to the statement. Local governments may sign agreements on spliting revenue from companies formed through cross-regional mergers and acquisitions, according to the statement.

China's policy of promoting company consolidation will focus on the automobile, cement, steel, machinery, rare earth and aluminum industries, while also convering other industries, according to the statement.

The nation will also encourage the entry of private capital into industries from which it isn't banned and also allow private capital to hold larger stakes in companies, it said.