Baosteel Group will change its plan to restructure the south China-based Guangdong Iron and Steel Group Corp, and now make the company a wholly-owned subsidiary.

Baosteel signed a restructuring agreement with the State owned Assets Supervision and Administration Commission (SASAC) of the provincial government of Guangdong on August 22.

The local government will transfer its 20% equity in Guangdong Steel, after which Baosteel will wholly own the steelmaker, according to the agreement.

Based on the previous proposal in June 2008, Baosteel was to pay 28.688bn yuan in cash ($4.49bn) to take an 80% stake in the Guangdong Steel while the provincial SASAC would take 20%.

Source: China Metals e-mail