Baos­teel to merge with Wuhan Iron & Steel

China Daily (Canada) - - NEWS CAPSULE -

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.

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