China: Baowu gets Beijing approval to acquire Sinosteel Group

China's State-owned Assets Supervision and Administration Commission of the State Council (SASAC) has granted approval for the restructuring of China Baowu Steel Group (Baowu) and Sinosteel Group (Sinosteel), according to a release from SASAC issued Wednesday. SASAC's approval now allows Baowu to take control of Sinosteel to expand its business portfolio.

Sinosteel, established in 1993, is a state-run enterprise managed by SASAC and mainly engaged in developing and processing of metallurgical mineral resources, trading and logistics of metallurgical raw materials and products, and related engineering technical services and equipment manufacture, according to the company's website.

Should the acquisition be completed before December 31, it would be Baowu's second significant acquisition this year. In October, the steel giant gained a controlling 51% stake in Xinyu Iron & Steel Co, as Mysteel Global reported.

As of late Wednesday, Baoshan Iron & Steel, Baowu's listed arm, had not issued any disclosure statement to shareholders.

Written by Rong Zhang, zhangronga@mysteel.com

This article has been published under an article exchange agreement between Mysteel Global and SteelMint.