China’s Shandong Iron and Steel Co Ltd said on Wednesday its ownership could change as a result of a planned restructuring of its parent involving top global steelmaker China Baowu Steel Group.
The company said in a filing to the Shanghai Stock Exchange that the state assets regulator of eastern China’s Shandong province was working with Baowu on a “strategic restructuring” of parent company Shandong Iron and Steel Group.
“This matter may lead to a change in the company’s controlling shareholder and actual controller,” it said, adding that uncertainties remained.
Baowu had no immediate comment on the announcement.
Chinese media 21st Century Business Herald reported in January that Shandong Iron and Steel Group, China’s seventh-biggest steelmaker by production with 31.11 million tonnes in 2020, would be merged into Baowu.
Acquiring the Shandong producer would hoist Baowu’s annual steel production towards the 150 million tonne mark, after it churned out a world-beating 115 million tonnes last year.
Baowu’s acquisition spree picked up pace in 2020 when it took over Taiyang Iron and Steel (Tisco), China’s second-biggest stainless steel maker, as the country strives to meet a target of consolidating 60%-70% of production in the hands of its top 10 steelmakers by 2025.
(By Min Zhang and Tom Daly; Editing by Louise Heavens and Kirsten Donovan)