Hebei Iron and Steel takes stake in Duferco

China's largest steelmaker, Hebei Iron and Steel Group Co Ltd, will take a controlling stake of 51 to 52 percent in Swiss-based steel trader Duferco, a move that signals China's determination to offset pressure from domestic overcapacity, experts said.

The deal, with an investment of about $400 million, is expected to be signed by the end of the year after the Hebei-based steelmaker gets the government's green light, Chinese news website 163.com reported.

"Duferco has a global network covering the iron and steel market in South Africa, and it can help us expand in the overseas market," Peng Zhaofeng, general manager of HBIS, was quoted by the website as saying at an industry forum over the weekend.