China Business News reported that state owned Valin Iron & Steel Group has finally failed to compete with a private firm Liaoning Fangda Group Industrial Co to win the 57.97% stakes of Jiangxi Nanchang Steel which was listed for sell a month ago

According to Nanchang Steel listed unit Changli Iron & Steel Co Ltd, its parent controller Jiangxi Metallurgical Group Co has inked a stake transferring agreement with Fangda Group to sell all its 57.97% shares in Nanchang Steel to the latter.

Fangda would become the controlling shareholder of Nanchang Steel and the real controller of Changli Iron & Steel Co Ltd after the shares transference. While senior official of Nanchang Steel said that local government requires the completion of its shares restructuring within this year.

Fangda Group with a listed unit of Fangda Carbon New Material Co Ltd main product is carbon materials and it has started to march into mine and steel sectors in recent years. Sole steel asset of it is Wulanhaote Iron & Steel Co Ltd with key products of wire rod and round steel etc.

Analysts believe that it might be the resources controlled by Nanchang Steel that attracted Fangda Group to take part in the regrouping, since it is so far away from its core business. And Fangda might also mull to forge its steel and iron businesses through Changli Steel.

(Sourced from China Business News)