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.
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