Deals
China’s Top Steel Mills Step Closer to Creating Arcelor Rival
- Baoshan, China’s second-biggest producer, to buy Wuhan Steel
- Follows earlier report of Ansteel, Benxi merger plan
Top Chinese Steel Mills Merge Units
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Two of China’s biggest steelmakers agreed to merge their listed units, moving a step closer to a union that would create the nation’s biggest mill and a company with the scale to rival ArcelorMittal SA.
The publicly traded arm of Shanghai Baosteel Group Corp., the second-biggest Chinese mill by output, will swap shares with the listed unit of Wuhan Iron & Steel Group Corp., its No. 6 steelmaker, the smaller company said in a statement Tuesday. The parents remain in talks about restructuring, Wuhan said, without elaborating. A merger of the groups would be the biggest tie-up since the creation of ArcelorMittal nearly a decade ago.