China Construction Bank (CCB) has agreed to offer an 800 million yuan ($116.96 million) 3-year M&A loan to Baosteel Group Corporation, Xinhua News Agency reported on Wednesday.

Baosteel will use the loan from CCB to take over Ningbo Iron & Steel Co Ltd, which is the country's first M&A deal fueled by bank loans after the State Council, China's Cabinet, approved the steel rejuvenation plan.

Bank of Communications has also provided a 750 million yuan M&A loan to Baosteel to help it buy into the Ningbo company.

Baosteel will eventually hold a 56.15 percent stake in the company.