Hebei Iron arms merger to challenge Baosteel

SHANGHAI: The Hebei provincial government has grabbed the initiative to reform its steel industry to compete with the big boys, particularly Shanghai-based Baoshan Iron and Steel, or Baosteel.

Hebei Iron & Steel Group, the holding company controlled by the provincial government, is believed to have asked its unlisted and listed subsidiaries to work out the details of a merger plan.

The proposed merger calls for the acquisition by the principal listed subsidiary, Tangshan Iron and Steel (Tangsteel), of the assets of the other listed subsidiaries, Handan Iron and Steel and Chengde Xinxin Vanadium and Titanium Co. When the transaction is complete, Tangsteel will be the sole remaining listed subsidiary of Hebei Iron.