Stocks News
- Shagang in talks to buy rival producer
Date: 20-Sep-2007 Sources: (People's Daily)
SHANGHAI: The mainland's largest privately owned steelmaker Jiangsu Shagang Group said it's seeking a controlling stake in Anyang Yongxing Iron & Steel Co Ltd.
Anyang Yongxing is the biggest privately owned steel producer in Henan Province.
'We are talking with Anyang Yongxing on the acquisition because their product structure is complementary to ours,' a Shagang executive surnamed Qian said yesterday.
If the deal goes through, it will be China's first cross-regional merger of two privately owned steel manufacturers. The deal is expected to be completed this year.
An Anyang County government official said last month that Henan Province is actively promoting a merger between Shagang and Anyang Yongxing as part of a plan to restructure the steel industry.
'We are also talking with other local and international steelmakers about possible mergers and acquisitions,' said Qian, but he declined to elaborate.
Qian denied rumors about Baosteel's intention to acquire Shagang and speculation that his company will invite strategic funds from US investment bank Goldman Sachs. 'I'm in charge of investment, and I haven't heard anything about this,' said Qian. Shagang began cooperating with Anyang Yongxing in 2002.
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