Baowu And Magang Group Sign Agreement For Restructuring

- Sep 23, 2019-

On the afternoon of September 19, China Baowu Steel Group and Magang Group signed an agreement for implementing restructuring in Hefei


On June 3, Masteel Group released an announcement that the company received China Baowu and State-owned Assets Supervision and Administration Commission of Anhui signed an agreement for gratuitous transfer of state-owned equity. Based on the agreement, the former acquires 51% equity in Magang Group Holding Co., Ltd.and the latter holds 49%. Thus, China Baowu is the new controlling shareholder of Magang Group Holding Co., Ltd.



Afier the transfer Madana Group directly holds 3.nc tatal equity, and becomes illion shares of Masteel Group's A-shares, accounting for about 45.54% in Masteell the direct controlling shareholder of Masteel Group and China Baowu becomes the indirect one. As China Baowu belongs to State-owned Assets Supervision and Administration Commission of the State Council, the latter will be the actual controller of Masteel Group



Afier the transfer Madana Group directly holds 3.nc tatal equity, and becomes illion shares of Masteel Group's A-shares, accounting for about 45.54% in Masteell the direct controlling shareholder of Masteel Group and China Baowu becomes the indirect one. As China Baowu belongs to State-owned Assets Supervision and Administration Commission of the State Council, the latter will be the actual controller of Masteel Group



China Baowu Steel Group is the result of ioint restructuring between Baosteel Group co., Ltd. and Wuhan lron and Steel (Group) Co., Ltd. which was founded or December 1, 2016 with the iron and steel capacity of 70 million tons. China Baowu is the pilot enterprise for state-owned fund to invest in companies. The general assets of China Baowu in 2018 were RMB711.8 billion (USD100 billion) and the crude steel outout was 67.25 million tons




It is said that after restructuring the total outout of crude steel will be improved to more than 87 million tons. accounting for about 9.4% in national crude steel output.The restructurina is expected to move the concentration index of Chinese iron and steel industry up by 1.5%, improve bargaining power of Chinese steel mills with overseas mines and Chinese discourse power in iron and steel industry chain all over the world




Edit by Ms. Vicky of  CSPG

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