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The China Fangda Group wants to take over the state-owned Anyang Iron & Steel Group

FILE PHOTO: A poster depicting Chinese President Xi Jinping is seen outside the Xinyuan Steel Plant in Anyang
FILE PHOTO: A placard bearing Chinese President Xi Jinping is seen in front of the Xinyuan Steel Plant in Anyang, China’s Henan province, 19 February 2019. REUTERS/Thomas Peter/File Photo

March 29, 2022

BEIJING (Reuters) – A unit of Chinese private company Liaoning Fangda Group has offered to buy an 80 percent stake in state-backed Anyang Iron & Steel Group, the listed arm of Anyang said in a filing with the Shanghai Stock Exchange.

As part of its bid of at least 11 billion yuan ($1.73 billion) for the 80 percent stake, Jiangxi Fangda Steel Group Co Ltd has filed an application and deposit with the Henan Zhongyuan, according to the Henan Stock Exchange and a statement from Property Rights Exchange filed Anyang Iron and Steel Co Ltd.

The Anyang Group, the leading steelmaker in central China’s Henan Province with an annual steel capacity of 10 million tons, has planned ownership reform after China called for further consolidation of its mammoth iron sector.

It signed a memorandum of understanding with Jiangsu-based private steelmaker Shagang Group in May 2021, before the local government decided to publicly list its 80 percent stake last November.

Jiangxi Fangda, which also owns the Shanghai-listed Fangda Special Steel, has a production capacity of around 20 million tons of steel products per year.

The outcome of the Anyang Group share transfer is still pending and could lead to changes in the ownership structure of the listed Anyang Iron and Steel, the filing said.

China had pledged to accelerate mergers and acquisitions in the steel sector and expected its top 10 steelmakers to account for 60% of the country’s total steel output, up from 37% at the end of 2020.

($1 = 6.3650 Chinese Renminbi Yuan)

(Reporting by Min Zhang and Dominique Patton; Editing by Barbara Lewis)

https://www.oann.com/china-fangda-group-aims-to-take-over-state-owned-anyang-iron-steel-group/?utm_source=rss&utm_medium=rss&utm_campaign=china-fangda-group-aims-to-take-over-state-owned-anyang-iron-steel-group The China Fangda Group wants to take over the state-owned Anyang Iron & Steel Group

DUSTIN JONES

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