Anshan Iron and Steel Group Corporation is expected to merge with Sichuan-based Panzhihua Iron & Steel.

The deal was first mooted in early 2009 when Anshan I&S acted as a third party to finance the cash option by shareholders of Pangang’s three listed entities targeted for consolidation.

Sources say the planned restructuring is close to finalisation although officials from both steelworks declined to respond to the news.

The two companies are under direct administration of the central authorities, which, under a multi-layered taxation system, could make a trans-regional restructuring more feasible.
Source: China Metals e-mail