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China Rare-Earths Pact Spurs Speculation of Bigger Consolidation

  • China seeks to build industry giants to gain pricing power
  • China Rare Earth Holdings shares jump 15% in Monday trading

A tie-up between two rare-earths companies is throwing a spotlight on China’s efforts to build industry giants to gain better pricing power in global markets. 

China Northern Rare Earth (Group) High-Tech Co. announced over the weekend an agreement with China Rare Earth Holdings Ltd. to cooperate in mining, trade and deep processing operations. Shares of China Rare Earth soared as much as 15% in early trading Monday, while China Northern climbed as much as 4.5%.