Bloomberg reported that Chinese nickel giant Tsingshan Holding Group is in advanced talks to sell some of its stainless-steel assets in Indonesia to China Baowu as part of a strategic review. The report quoted sources as saying that “Baowu is likely to acquire controlling stakes in some integrated production lines owned by Tsingshan at Indonesia Morowali Industrial Park in Central Sulawesi province. The talks started in April, and the assets for sale include production plants of stainless steel and nickel pig iron. A deal could be worth USD 3-4 billion.”Sources added “The two sides have already agreed on several key terms and are currently discussing details such as operations and sales after the acquisition.”A successful transaction would boost Baowu’s annual stainless-steel production capacity to over a combined 13 million tonnes by adding one million tonnes in Indonesia, according to Bloomberg’s calculation based on the company’s existing capacity and the plants that they’re in talks to acquire.Baowu has also become China’s biggest stainless steel maker through a series of acquisitions in a consolidation push backed by the Chinese central government. It took over Shanxi Taigang Stainless Steel Co in 2020 and has bought controlling stakes in other smaller Chinese domestic rivals over the past few years. Baowu has ambitions of raising stainless steel output to 15 million tonnes by end-2023 and to 18 million tonnes by end-2025, via jointly owned mills with Chinese local and overseas companies. Its operations span western Xinjiang to eastern Shandong to southern Guangdong in China. A successful transaction would boost Baowu’s annual stainless-steel production capacity to over a combined 13 million tonnes by adding one million tonnes in IndonesiaTsingshan Holding is owned by billionaire Mr Xiang Guangda who shot to prominence recently after his bets that nickel prices would fall caused a historic squeeze on the London Metal Exchange earlier this year.