China set for new giant steelmaker with potential Baowu-Magang merger

China’s largest steelmaker could become even bigger this year if its merger with another mill is given the green light.

News of the possibility emerged at the end of last week, when an announcement was made about such a move involving China Baowu Group, the world’s second-largest steelmaker that was formed in 2016 via the merger of Baosteel and Wuhan Iron & Steel. Maanshan Iron & Steel Group (Magang) announced late last Friday that it was in the final stages of a merger with Baowu. The deal would involve the transfer of 51% of shares in Magang held by its owner - the Committee of State-owned Enterprises of Anhui province - to Baowu, it said. This would require the approval of China’s State-owned Assets Supervision & Administration Commission. While there is yet to be a name for the prospective new entity, market sources have been referring to it as the “BMW” of Chinese steelmakers, after the initials of Baosteel, Magang and Wuhan Steel, as well as a nod to the German automotive...

Published

Jessica Zong

Paul Lim

Miranda Song

June 03, 2019

09:15 GMT

Singapore, Shanghai