Companies

China's Benxi Steel agrees to acquire Beitai

(Agencies)
Updated: 2010-05-20 15:38

SHANGHAI - China's Benxi Iron & Steel Group has agreed to acquire Beitai Steel, in a move that could make it No 3 among the country's steelmakers after a planned merger with the Anben Steel Group, the China Business News reported.

Benxi Steel and Beitai Steel, both located in the northern province of Liaoning, signed the agreement on May 7, the newspaper said. It quoted a senior official from Beitai Steel.

However, Benxi Steel is still locked in slow negotiations over a merger with Anshan Steel, which was mooted more than four years ago.

Related readings:  Benxi sees good steel demand, no cutbacks

The merger, if successful, is expected to outstrip the Wuhan Iron & Steel Group to become China's third largest after Hebei Steel and Baosteel.

Earlier, it was rumoured that its sister company Anshan Steel had also aimed to buy Panzhihua Steel in China's southwestern Sichuan province.

Panzhihua Steel produced 8.2 million tons of crude steel last year, according to production figures from the China Iron & Steel Association.

The Anben Steel Group produced 29.3 million tons of crude steel last year, and Benxi Steel generated 6.9 million tons of crude steel.