China: Baosteel to buy stake in Shandong Steel Rizhao

Baoshan Iron & Steel Co (Baosteel), the listed-arm of the world's largest steelmaker China Baowu Steel Group, has agreed to purchase a 48.6% stake in SD Steel Rizhao Co., Ltd. from Shandong Iron & Steel Group for Yuan 10.7 billion ($1.49 billion), according to Baosteel's release on December 8.
The move will enhance Baosteel's presence in northern China and the company could gain steady return on this investment, the steel giant claimed in its release. The deal is pending approval from China's state asset regulating authorities, it added.

Located in Rizhao city in East China's Shandong province, SD Steel Rizhao raked in Yuan 26.3 billion in business revenue and Yuan 528 million in net profits over January-September this year, the release noted.

Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.