The world’s largest steelmaker officially became bigger Wednesday after Chinese authorities approved China Baowu Steel Group’s takeover of compatriot Sinosteel Group, reports Nikkei Asia. Baowu Steel absorbs Sinosteel’s prowess in resource development and importing of raw materials. The addition of Sinosteel’s mining assets will boost Baowu’s global competitive advantage.
The absorption, announced by China’s State-owned Assets Supervision and Administration Commission (SASAC), represents the latest in a series of purchases by Baowu Steel.
Sinosteel’s predecessor was founded in 1980, according to Chinese media. Sinosteel’s core businesses are mainly in supplying steelmaking technology and in importing resources. The company entered into manufacturing of steel products through group companies.