Shandong Iron & Steel Could Merge with Baowu Steel Group
China’s Shandong Iron and Steel Co Ltd informed Shanghai Stock Exchange that its ownership could change as a result of a planned restructuring of its parent involving to China Baowu Steel Group. It said “The state assets regulator of eastern China’s Shandong province was working with Baowu on a strategic restructuring of parent company Shandong Iron and Steel Group. This matter may lead to a change in the company’s controlling shareholder and actual controller.”
However it added that uncertainties remained.
Chinese media had reported in January that Shandong Iron and Steel Group would be merged into Baowu.
China’s seventh-biggest steelmaker by production with 31.11 million tonnes in 2020 Shandong Iron and Steel Group would increase Baowu’s annual steel production beyond 150 million tonne mark
The State owned Shandong Iron and Steel Group Co Ltd was created out of the restructuring of Jinan Iron and Steel Group Co and Laiwu Steel Group Corp and Shandong Metallurgical Industry Corp. The three belong to the Shandong provincial state assets management commission.