Two Chinese steel companies, Baosteel and WISCO, have announced a merger and acquisition move, the first of the year in the Chinese steel market.
The two companies are publicly listed entities and they formally declared their intention to merge over the weekend, reports CRU.
Stocks in both companies will be suspended in the course of bilateral talks, the formation of a detailed merger/restructuring plans and acquisition of required regulatory approvals.
In the global context, Baosteel is the world's fifth largest steel producer and WISCO the eleventh. The merger would create the second largest steel producer in the world, although still some way behind ArcelorMittal in volume terms.