Big merger forms No 2 steel giantNewly created China Baowu Steel Group Corp aims to be a global leader as it undertakes multiple market-based reforms, including eliminating excess capacity and enhancing its international competitiveness. The company－formed from the merger of Shanghai Baosteel Group Corp and Wuhan Iron & Steel Group－was launched in Shanghai on Thursday, becoming the world's second-largest steelmaker, just behind ArcelorMittal. Based on the 2015 capacity of both Baosteel and Wuhan Iron & Steel, its sales revenue is estimated to reach 330 billion yuan ($47.9 billion), equivalent to around 123rd place on the Fortune 500 in 2015. Baoshan Iron & Steel, the listed unit of Baosteel, will issue new shares to shareholders of Wuhan Iron & Steel in order to merge the companies, a plan that the China Securities Regulatory Commission started reviewing on Thursday. "For instance, Baosteel's manufacturing base in Zhanjiang, Guangdong province, and Wuhan Iron and Steel's manufacturing base in Fangchenggang in the Guangxi Zhuang autonomous region are very similar.

Source: The China Post December 02, 2016 18:01 UTC