Chinese Baowu Steel acquires most shares from Magang
3 Jun 2019 16:39 reported by Dani Wang
According to the report, the world’s second-largest crude steel mill, China Baowu Steel Group Corp. Ltd., got 51% of stake of Magang Group Holding Co., Ltd. and could integrate its steel output capacity.
Magang, also listed as Maanshan Iron & Steel Co., Ltd., confirmed and signed this agreement on May 31st with Baowu. In the meantime, Baowu Steel shall govern 45.54% of shares of Maanshan Iron & Steel Co., but the total value was unknown.
Both Baowu Steel and Maanshan were listed on the second and sixteenth ranking of the steel output in the data from the World Steel Association (worldsteel). This merger could be a step for China to control the year-long problem from mills, such as pollution and overproduction.
China was expected that all its 60% of nation steel capacity to be controlled under the top 10 local mills.
This agreement was under the procedure of approval and anti-monopoly review.
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