Companies

Ansteel intends to merge Baogang

By Ren Jie (chinadaily.com.cn)
Updated: 2010-06-01 17:07

Anshan Iron and Steel Group (Ansteel) has expressed its intention to bring Baotou Iron and Steel Group (Baogang Group) under its fold, after Baosteel Group Corp ended its talk with Baogang Group in April, according to media reports.

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Baogang Group is the largest rare earth industrial base in China. Ansteel, which was attracted by the company's rich natural resources and high value-added products, had carried out studies on the company's product structure, mine exploitation and rare earth resources, the 21st Century Business Herald reported, quoting a source familiar with the matter.

The paper also said both sides showed interest in each other and the merger process was expected to carry on.

Baosteel Group, one of China's top steelmakers, has negotiated with Baogang Group for a merger for four years. The talk ended in April because their merger lacked local support, according to the report.