Chinese steel giant
Baosteel Group has signed an agreement with the State-owned Assets Supervision and Administration Commission (SASAC) of Guangdong Province and Guangzhou City regarding the restructuring project for Guangdong Steel Group.
Under the framework of the agreement, Guangdong Steel will become the wholly-owned subsidiary of
Baosteel.
Baosteel has withdrawn its previous plan to integrate the assets of Guangzhou Steel Group and Shaoguan Steel Group into Guangdong Steel. Additionally, the current owners of Guangdong Steel, the SASAC of Guangdong Province and Guangzhou City, have both agreed to sell their shares in Guangdong Steel.
On August 23,
Baosteel also inked a framework agreement with the SASAC of Guangdong Province and Guangzhou City. Accordingly, the SASAC of Guangdong Province will transfer its 51 percent share in Shaoguan Steel to
Baosteel for free. However, the deal is subject to the approval of the SASAC of the State Council of
China.