China’s State-owned Assets Supervision and Administration Commission (SASAC) has announced that Shanghai-based steelmaker Baosteel Group will merge with Wuhan Iron and Steel Group and change its name to China Bao-Wu Iron and Steel Group, becoming the world’s second-largest steelmaker after ArcelorMittal. This shows China’s determination to consolidate its steel industry and improve its overall competitiveness, according to the SASAC.
Baoshan Iron and Steel Co. Ltd (Baosteel) announced on September 22 that one share of Wuhan Iron and Steel Co. Ltd will be equal to 0.56 of a Baosteel share for the purposes of the merger. According to the announcement, after the merger Baosteel Group will hold a 52.10 percent stake in the new group, Wuhan Iron and Steel Group will hold 13.48 percent, other shareholders of Baosteel will hold 22.35 percent, while other shareholders of Wuhan Iron and Steel Co. Ltd will hold the remaining 12.07 percent of the total of 16.4669272 billion shares.