Leading steelmaker Baosteel is planning to enter a partnership with Hangzhou Iron and Steel Group in order to take over and restructure a third firm, Reuters reported. The deal would give Baosteel a 56.15% stake in the joint venture owner of Ningbo Iron & Steel Co, with Hangzhou Iron and Steel holding the remaining 43.85%. The Ningbo steel maker is expected to expand its capital and issue more shares after the initial restructuring, but Baosteel will continue to hold a majority stake. China has a stated policy of encouraging consolidation in its steel industry.
You must log in to post a comment.
Yes, I would like to receive emails from China Economic Review. (You can unsubscribe anytime)
Copyright © 2018 SinoMedia Group Limited All rights reserved