TEHRAN, Mar 06 -China’s Benxi Steel Group will not merge with regional rival Ansteel Group, the chairman of Benxi Steel told Reuters on Wednesday, putting paid to long-running talk of a potential merger.
TEHRAN, Young Journalists Club (YJC) -Benxi Steel and Ansteel are located in northeast China’s Liaoning province. Benxi is backed by the provincial government and Ansteel by Beijing.
The two steel groups have been reported to be in talks over a possible merger since 2005 as part of Liaoning’s efforts to mainstream and de-leverage its heavy industry.
“We have completely stopped the talks with Ansteel on a merger,” Chen Jizhuang, chairman of Benxi Steel, told Reuters on the sidelines of the country’s annual parliament congress. He did not elaborate.
Benxi Steel started reforms on a mixed ownership structure in September, which would allow the company to attract private capital while retaining control of the company.
“We could lower our debt by 10 percent and reduce financial costs by 2 billion yuan ($298 million) through the reform,” Chen said at the parliament congress.
Both are specialized in plate-making, especially cold-rolled coil and galvanized steel sheet used in the automobile industry.
Source: Reuters
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