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Baosteel still in merger talks with Baogang

By Ren Jie (chinadaily.com.cn)
Updated: 2010-06-02 16:35
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Chinese steel mill Anshan Iron and Steel Group Corp (Ansteel) has denied a media report that the company intended to merge the Baotou Iron and Steel Group (Baogang Group) of Inner Mongolia.

Angang Steel Co Ltd, the listed unit of Ansteel, said in a statement that Ansteel's senior executives had visited the Inner Mongolian company but it had nothing to do with a merger, the Securities Daily reported Wednesday.

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Ansteel was expected to buy Baogang Group after merger talks between Baosteel and Baogang Group collapsed after four years of negotiations, the 21st Century Business Herald said on Tuesday.

However, Xu Lejiang, chairman of Baosteel Group, told China Business News later on Tuesday that the merger talk between Baosteel and Baogang Group is still in progress. The paper also said Baogang Group and the local state-owned assets supervision and administration commission had visited Baosteel in April and that Baosteel said it intended to buy a controlling stake in Baogang.

Besides Baosteel, Baogang Group also had close contacts with Angang and Shougang Group, one of the largest steelmakers in China.