FOSUN, the China-based global home consumption industry group, announced on October 13 that Jiangsu Province-based major Chinese steelmaker Shagang Group, FOSUN, Nangang Group and Nanjing Iron and Steel Co., Ltd. (Nanjing Steel) have inked a mediation agreement according to which Shagang Group will voluntarily withdraw from the transaction involving the acquisition of 60 percent equity in Nanjing Steel, while Nangang Group pay compensation to Shagang Group.
After Shagang Group receives compensation payment, all parties involved in the acquisition of 60 percent equity of Nanjing Steel case will never initiate any litigation or arbitration claim.
With the related parties reaching a settlement in the case, FOSUN’s deal with Nangang Group can move forward, with the deal costing the latter group RMB 13.58 billion ($1.9 billion) in acquiring 60 percent equity of Nanjing Steel. After the acquisition, Nangang Group will hold 100 percent equity in Nanjing Steel.