Steelmakers closer to creating mega mill

Baosteel to merge with Wuhan Iron & Steel in key part of plan to consolidate sector, cut overcapacity

Two of China's biggest steelmakers agreed to merge their listed units, moving a step closer to a union that would create the world's second-biggest mill.

The publicly traded arm of Shanghai Baosteel Group Corp, China's largest steel company, will swap shares with the listed unit of Wuhan Iron & Steel Group Corp, China's sixth-largest steelmaker, the smaller company said in a statement on Tuesday.