Anshan Iron and Steel Group Corporation is expected to take over Sichuan-based Panzhihua Iron & Steel (Group) Corp.
The deal was initially made public in early 2009 when Anshan I&S acted as a third party to finance the cash option for shareholders of Pangang’s three listed entities.
Now documents have been submitted to the state council for approval, meaning the deal is nearly finalised. Both steelmakers are under direct administration of the central authorities, which, under a multi-layer taxation system, could make a trans-regional restructuring more feasible.
Pangang produced 8.18Mt of steel last year, up 8.9% from 2008, and its semis output was 7.52Mt, up 6.9%.
Source: China Metals e-mail email@example.com