By staff reporter Zhang Boling

(Caijing.com.cn) Shougang Group plans to take over Changzhi Iron and Steel Group, based in northern China’s Shanxi province, sources familiar with the matter told Caijing. 

Beijing-based Shougang will pay at least 408 million yuan for a 58.29 percent stake in Changzhi, the sources said, with the remaining stake to be transferred to Shougang free by the Shanxi Provincial State-owned Assets Supervision and Administration Commission. 

Zhou Jimin

Zhu Jimin, chairman of Shougang Group, confirmed that the two parties are in talks for a merger, but provided no details. 

Changzhi Iron, located in Changzhi city, has annual production capacity of around 3.6 million tons.

Shougang is considering acquiring more steel plants, Zhu noted. 

China, the world’s largest steel producer and consumer, has been seeking to consolidate its fragmented steel industry for years, in a move to boost competitiveness.

Full article in Chinese: http://www.caijing.com.cn/2009-03-12/110118776.html