(Bloomberg) China is set to dominate the global steel making, with 51% stake by Ansteel Group in Benxi Steel Group Co. set to make it the third-biggest steel maker in the world.
The 51% stake in Benxi means that Ansteel’s steel capacity will jump to an annual rate of 63 million tons, with sales of about 300 billion yuan or $46 billion.
The deal in Benxi will make Ansteel only trail China’s Baowu Steel Group Corp. which currently ranks as the top producer of steel globally.
The acquisition is expected to deepen China’s steel supply cuts, boost iron ore supply, and enhance industry concentration.
The mega-mill merger happens when China seeks more control and moves towards larger, high-quality, and efficient producers in the market.
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