Ansteel and Ben Gang Group Corporation, two of China’s major steelmakers, announced a deal on Friday that will initiate a merger of the two companies, reports Xinhua. The merger and restructuring will create the world’s third-largest steelmaker.
According to the deal, the owner of Ben Gang–Liaoning Province’s State-owned Assets Supervision and Administration Commission–will transfer a 51-percent controlling stake in the steelmaker to Ansteel, and Ben Gang will become a subsidiary of Ansteel.
After the merger, Ansteel will have an annual production capacity of 63 million tonnes of crude steel, ranking third worldwide after China Baowu Steel Group Corporation Limited and Luxembourg-headquartered ArcelorMittal.