Baosteel to merge with Wuhan Iron & Steel
Two of China's biggest steelmakers agreed to merge, moving a step closer to a union that would create the world's secondbiggest mill. The plan is part of the government's push to consolidate the steel industry to combat over capacity.
The publicly traded arm of Shanghai Baosteel Group Corp, China's largest steel company, will swap shares with the listed unit of Wuhan Iron & Steel Group Corp, China's sixth-largest steelmaker, the smaller company said in a statement. The parent firms remain in talks about restructuring, Wuhan Iron & Steel said, without elaborating.
Baosteel is in the Yangtze Delta Region, the Pearl River Delta Region and the Xinjiang Uygur autonomous region. Wuhan Iron and Steel has its major bases in Hubei and Yunnan provinces, and the Guangxi Zhuang autonomous region.