Top China Steelmaker Surges Most Since July After Merger ReportsBloomberg News
Angang Steel Co., the listed unit of China’s fourth-biggest steelmaker, jumped the most in two months after media reported that its parent will be merged with a local industry peer.
The Hong Kong shares climbed as much as 5.4 percent to HK$4.12, the biggest intraday gain since July 13, before trading at HK$4.05 by 11:16 a.m. Shanghai time. The government will announce plans to unite its parent Ansteel Group Corp. with Benxi Steel Group Corp. by end-2016, the Shanghai Securities News said, citing China Iron & Steel Association Vice Secretary General Chi Jingdong.
Li Xinchuang, vice chairman of the association, declined to comment when reached by phone. Calls to Liu Jinyuan, a spokesman for Angang Steel’s parent, and Sun Yanbin, board secretary of Bengang Steel Plates Co., a unit of Benxi Steel, were not answered.
An Angang-Benxi tie-up would add to a flurry of potential steel mergers said to be under way as China’s government seeks to reshape the struggling, state-dominated industry. HeSteel Group Co. will join with Shougang Corp. to form the nation’s top producer, while Shanghai Baosteel Group Corp. will merge with Wuhan Iron & Steel Group Corp. to form the second-biggest mill, people familiar with the matter said in August. Angang-Benxi combined would form the No. 3 producer, with steel output last year of 47.5 million metric tons.
Shares in Angang Steel Co. and Bengang Steel Plates in Shenzhen were both suspended before trading on Tuesday pending a statement, they said separately.
— With assistance by Martin Ritchie